MUMBAI: The Indian stock market crashed on Tuesday, with the Sensex and Nifty falling over 1.3 per cent in the afternoon trade, as US President Donald Trump formally announced plans to impose 25 per cent tariffs on all steel and aluminium imports.
In the afternoon trade, the Sensex tumbled nearly 1,000 points, or 1.25 per cent, to around 76,300, while the Nifty slipped 300 points, or 1.3 per cent, falling below the 23,100 mark.
The broader market suffered even more, with midcap and smallcap indices plunging as much as 3.5 per cent amid deeper concerns beyond blue-chip stocks.
The ongoing market decline comes after former US President Donald Trump signed executive orders on February 10 to expand tariffs on steel and aluminium imports from March 12.
The move raised aluminium tariffs from 10 per cent to 25 per cent and reinstated a 25 per cent tariff on steel imports.
Key trading partners like Canada, Mexico, and Brazil lost their exemptions, fueling fears of a wider trade war and impacting global economic growth.
Meanwhile, the Indian Steel Association (ISA) has expressed deep concern over the US decision to impose tariffs on steel imports, urging the Indian government to push for the removal of long-standing anti-dumping and countervailing duties and to secure exemptions from these restrictive measures.
The latest tariff is expected to slash steel exports to the US by 85 per cent. These tariffs could lead to a massive steel surplus that will likely flood the Indian market, ISA warned.
According to experts, the stock market move suggests a cautious sentiment, influenced by global cues and the absence of strong domestic triggers.
Institutional flows remain a key factor in market sentiment with FII outflows reaching Rs 12,643 crore in February so far.