Sensex Falls 548 Points Amid US President Trump’s Tariff Concerns
On February 10, 2024, the BSE Sensex experienced a sharp decline, closing down 548 points at 77,311.80, largely driven by fears surrounding the potential impact of US President Donald Trump’s tariff threats. His warning of a 25% tariff on all steel and aluminium imports into the United States sent shockwaves through global markets, particularly impacting metal stocks on the Indian bourses.
Highlights:
- Sensex closed at 77,311.80, down by 548 points on February 10, 2024.
- Trump’s tariff threat led to widespread selling pressure, particularly in steel and metal stocks.
- Stocks such as Power Grid, Tata Steel, and Zomato bore the brunt of the sell-off.
Top Losers on Dalal Street: Power Grid, Tata Steel, Zomato
1. Power Grid Shares Slide by 3.27%
Power Grid Corporation of India led the losing pack on Sensex, with its shares falling by 3.27% to close at Rs 269.20. The stock experienced a significant increase in trading volume, with nearly 3.09 lakh shares traded, representing over 75% of its 10-day average volume. This marks the fourth consecutive decline for Power Grid, following a 4% drop in net profit reported for the October-December 2023 quarter, dampening investor confidence.
2. Tata Steel Drops 3% Amid Tariff Fears
Tata Steel also witnessed heavy losses, with shares falling over 3% to Rs 133.90. The company’s stock was impacted by the news of Trump’s tariff proposal, which threatened to impose a 25% tariff on all steel and aluminium imports into the US. As one of the major global players in the steel sector, Tata Steel and other companies such as JSW Steel and Hindalco felt the pressure, with Tata Steel’s trading volume reaching 11 lakh shares, nearly 69% of its 10-day average.
3. Zomato Faces Setback with 3% Drop
Zomato, the online food delivery giant, saw its shares decline by nearly 3% to Rs 227.15, continuing to struggle despite partial recovery earlier this year. The stock is still 25% lower than its all-time high of Rs 304, which it had achieved in December 2023. The ongoing market volatility continues to affect investor sentiment towards Zomato, as it faces headwinds in a challenging market environment.
Other Stocks in Focus: Titan and Kotak Mahindra Bank Show Mixed Performance
- Titan Company, part of the Tata Group, faced a 2.83% decline, closing at Rs 3,327.10, its lowest level in 200 sessions.
- In contrast, Kotak Mahindra Bank bucked the trend with a 1.34% increase, closing at Rs 1,962 per share.
- Bharti Airtel, HCL Technologies, Tech Mahindra, ICICI Bank, and Tata Consultancy Services (TCS) managed minor gains of up to 1%.
Sensex Closes Lower Amid Tariff Concerns
Despite some gains in select stocks like Kotak Mahindra Bank and Bharti Airtel, the broader market sentiment remained negative, largely attributed to the heightened fears around US tariffs on steel and aluminium. The Sensex ended the session lower, as global trade tensions took center stage, exacerbating market volatility.
Analysts suggest that the global economic uncertainty triggered by trade policies such as Trump’s tariff scare is likely to continue influencing Indian stocks, especially those in the metal and manufacturing sectors. The sharp drop in metal stocks signals a broader concern among investors about the potential long-term effects of trade tariffs on global supply chains and Indian exports.