Metal Stocks Slide Up to 5% as Tariff Concerns Hit Market Sentiment:

Metal sector stocks in India dropped significantly on April 4, with major companies like Hindalco, Nalco, Vedanta, and JSW Steel seeing losses of up to 5%. The decline was attributed to renewed concerns over the potential global impact of U.S. President Donald Trump’s recent tariff hikes on industrial goods.

The BSE Metal Index fell more than 3% in early morning trading, continuing the previous day's 1% decline. Vedanta, Nalco, and Hindalco each slipped by 5%, while Tata Steel lost 4% and Jindal Steel & Power dropped 3.3%.

Tariff Tensions Spark Global Metal Price Weakness

Although metals were not directly targeted in the new tariff measures, investor sentiment remained cautious. Market participants fear broader economic effects could reduce industrial demand and hurt commodity consumption globally.

Copper futures for May on COMEX dipped to $4.839 per pound (around $10,645 per tonne), showing a 10% drop from the previous week’s high. On the London Metal Exchange, copper prices fell up to 2% to $9,510.5 per tonne. Aluminum also hit a seven-month low.

Analysts Predict Further Price Declines

Market analysts from Citigroup, including Max Layton, expect copper prices may decline further to $8,500 per tonne in Q2 2025 due to persistent trade-related uncertainties. The sentiment remains bearish as global growth expectations weaken.

Economists also foresee a 30 basis point downside risk to India’s GDP, citing that nearly 9% of the country’s exports are potentially affected by the tariff hikes. Inflationary pressures and a subdued global oil demand outlook are also contributing to the uncertainty.

Rising Global Trade Tensions

Following President Trump’s tariff announcements, multiple countries hinted at retaliatory trade measures. The decision has triggered fears of an escalated trade conflict, which could reverse decades of economic liberalization and dampen investor confidence.

Global stock markets reacted negatively to the news, with many indices registering losses amid uncertainty over future trade flows and industrial demand.