Nifty in Red; Metal Index Down by 3% and India VIX Jumps 6% Amid Trump’s Tariff Proposal

The NSE benchmark Nifty50 index is experiencing a tough start to the week, as it extends its losing streak for the 4th session on Monday, February 10, 2025. The index slipped 180 points to 23,374 as of 10:33 AM, breaking below the psychological level of 23,500. The session opened on a negative note and witnessed further declines as volatility surged.

Global Trade Concerns Sour Market Sentiment

One of the key factors impacting investor confidence is the proposed tariff plan by US President Donald Trump. The announcement of a 25% tariff on all steel and aluminium imports into the US has heightened fears of a potential rise in US inflation, which could influence future decisions by the US Federal Reserve. The US dollar strengthened, adding further pressure on global equities.

Trump is expected to provide further details on his reciprocal tariff plan in a press conference scheduled for Tuesday or Wednesday. The move, aimed at ensuring fair treatment in trade, has sparked concerns over possible retaliatory measures from other economies, including India.

Metal Stocks Lead the Decline

With the proposed tariff plan weighing on market sentiment, the Nifty Metal Index emerged as one of the worst-hit sectors. The index was down nearly 3%, with all constituent stocks trading in the red. The anticipation of reduced export demand and the possibility of higher global steel and aluminium prices have contributed to the sell-off in metal stocks.

Foreign Investors Pull Out, India VIX Rises

Adding to the bearish sentiment, foreign institutional investors (FIIs) have been on a selling spree. So far in CY2025, FIIs have sold equities worth ₹97,463 crore, leading to increased selling pressure in domestic markets.

Meanwhile, the India VIX, which measures market volatility, has jumped by 6%, rising above 14.5. The surge in volatility indicates heightened uncertainty among market participants.

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