Metal stocks saw a significant decline on May 30, pushing the Nifty Metal index down over 1.3 percent to emerge as one of the top sectoral losers. This comes amid concerns over a slowdown in the industry as trade talks between US and China got "a bit stalled".
US Treasury Secretary Scott Bessent on May 29 said that the tariff talks between the two countries are a "bit stalled" and a deal will be concluded possibly after the direct involvement of President Donald Trump and Chinese President Xi Jinping.
"I believe we may at some point have a call between the president and party Chair Xi," Bessent said. "Given the magnitude of the talks, given the complexity ... this is going to require both leaders to weigh in with each other. They have a good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known," he added.
Additionally, a US federal appeals court temporarily reinstated sweeping tariffs on foreign imports. The decision overturned a lower court ruling that had blocked the tariffs, stating Trump had exceeded his authority. This came a day after the US Court of International Trade’s ruling, which blocked most of Trump's so-called 'Liberation Day' tariffs. That ruling had raised hopes of reduced trade tensions and bolstered investor sentiment across global IT counters.
Vedanta was the top loser on the Nifty Metal index, dropping over 3 percent to trade at Rs 437 apiece. Hindustan Zinc and Hindalco followed, dropping over 2 percent each. NMDC and Jindal Stainless were down over 1.8 percent each, while Hindustan Copper, JSW Steel, APL Apollo Tubes and Tata Steel were down over 1 percent each.
SAIL and Adani Enterprises shares were trading in the red with marginal losses.
US President Donald Trump had unveiled a slew of reciprocal tariffs on a number of countries on April 2. What followed was counter measures taken by several countries against US, which triggered a world-wide trade war. The most prominent tariff war was seen between US and China.
US and China engaged in a tit-for-tat tariff war, with each announcing a higher tariff on the other. The war reached its peak when Trump hiked tariffs on Chinese imports to a whopping 145 percent. The two countries however then began negotiations to come to a mutual agreement over the tariffs.
However, Bessent's latest comment on the talks being stalled triggers concerns over a possible slowdown in the metal industry.
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