Metal Stocks Plunge Amid Global Trade War Fears; Tata Steel Sinks Over 11%

Indian metal stocks suffered a brutal blow in Monday’s early trade, with shares nosediving across the sector following escalating global trade tensions. The sharp selloff came on the heels of US President Donald Trump’s sweeping tariff measures and retaliatory actions from China, sparking fears of a full-blown trade war.

Market benchmark indices — the BSE Sensex and NSE Nifty — witnessed a steep fall of over 5% in early morning trade, mirroring the bloodbath in global equities. The negative sentiment was driven by investor concerns that rising protectionism could derail global economic growth and disrupt international supply chains.

Leading the decline, Tata Steel shares plunged 11.56%, making it one of the worst performers on the BSE. Other major metal stocks also crumbled under pressure. National Aluminium Company Ltd (NALCO) tumbled 11.22%, APL Apollo Tubes fell 10%, SAIL dropped 9.99%, JSW Steel slid 9.92%, and Jindal Stainless shed 9.91%.

Analysts attributed the sharp declines to investor nervousness around the rising risk of international trade disruptions and potential impacts on commodity prices. “The metal sector is extremely sensitive to global trade dynamics. With tariffs being slapped and retaliatory measures being taken, the entire outlook for exports and raw material pricing is clouded with uncertainty,” said a market analyst.

The broader market rout indicates that investor sentiment remains fragile, with global macroeconomic tensions weighing heavily on domestic indices. Market participants will be closely watching diplomatic developments between the US and China, as well as any potential responses from other major economies.

As volatility spikes and uncertainties loom, analysts advise caution in the near term, particularly in globally exposed sectors like metals.