Metal stocks rise up to 17% after 5 monthly declines. But trend sustainability will have to pass through Trump tariff test
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Metal stocks have staged a strong comeback over the past month, rising by up to 17%, while the sector has remained a top draw for investors, outperforming the Nifty by over 10%, driven by the ongoing slide in the dollar index (DXY). However, the real test of sustainability begins now, with flat 25% tariffs on steel and aluminum, imposed by US President Donald Trump "without exceptions or exemptions," set to take effect on Wednesday, March 12. On Tuesday, the Nifty Metal index fell 1.5% in early trade, hitting the day's low of 8,715.15. Individually, stocks fell over 3%, with the sharpest declines seen in NMDC, Hindustan Copper, and Steel Authority of India (SAIL). Trump's ever-shifting tariff policies have created uncertainty, said Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies at Angel One. Although the steel and aluminum tariffs are scheduled to take effect on March 12, he has postponed the new 25...