PNC-Infratech-Jumps

Tata Steel Plunges 3.29% to ₹133.75 as US Tariff Fears Weigh on Metal Stocks

 

The stock market on February 10, 2025, experienced a mixed session, influenced by global uncertainties, corporate earnings, and economic data. Benchmark indices in India, along with major global markets, reacted to ongoing geopolitical concerns, new tariff announcements, and investor sentiment around economic growth.

 

Global Market Performance

 

Asian markets exhibited mixed performances as investors remained cautious about the possibility of new trade tariffs announced by the U.S. government. Japan’s Nikkei 225 closed slightly higher, supported by a strong current account surplus. South Korea’s Kospi and Australia’s ASX 200 ended lower as technology and export-driven stocks saw profit booking. China’s Shanghai Composite and Hong Kong’s Hang Seng indices showed resilience, helped by expectations of fresh economic stimulus from the Chinese government.

European markets faced uncertainty amid ongoing political developments and concerns about economic slowdown. Investor confidence in UK equities remained weak as fund outflows from the British stock market continued to rise. Since the Brexit referendum in 2016, nearly £100 billion has been withdrawn from UK equity funds, raising concerns about London’s long-term position as a global financial hub.

U.S. stock markets closed lower in the previous session, with the S&P 500 declining nearly 0.9%, while the Dow Jones Industrial Average dropped more than 400 points. The Nasdaq Composite also saw a steep decline of 1.4%. Rising treasury yields and disappointing earnings reports from some of the largest American corporations contributed to the negative sentiment.

 

Indian Stock Market Trends

 

The Indian stock market followed the global trend, with benchmark indices ending in the red. The BSE Sensex fell by more than 650 points, while the Nifty50 lost over 200 points. Market sentiment was influenced by the impact of proposed U.S. tariffs, expectations around upcoming corporate earnings, and fluctuations in global commodity prices.

Investors remained cautious as key sectors, including metals, technology, and banking, faced selling pressure. Stocks from the steel industry saw declines after reports suggested that U.S. policymakers might impose new tariffs on imports.

 

Top Gainers in the Market

 

PNC Infratech emerged as one of the top gainers, witnessing a strong buying interest. The stock price rose by 3.72%, closing at ₹305.15. The company, involved in infrastructure and real estate contracting, benefited from increased investor confidence in government-backed construction projects.

Mazagon Dock Shipbuilders recorded a notable surge, with the stock price rising 3.46% to ₹2,307.45. Increased defense sector investments and shipbuilding contracts supported the stock’s rally.

Redington India, operating in the computer hardware space, saw a 3.13% increase, reaching ₹239.06. Strong demand for IT hardware and supply chain stability contributed to the company’s positive performance.

 

Stocks Facing Losses

 

Tata Steel faced heavy selling pressure, with the stock dropping 3.29% to close at ₹133.75. The possibility of U.S. tariffs on steel imports led to concerns about export demand, impacting steel sector stocks.

Reliance Industries witnessed a decline of 1.45%, closing at ₹1,248.45. Weak global cues and profit-booking in oil and telecom segments contributed to the stock’s movement.

Tata Motors ended lower, falling by 1.39% to ₹696.75. The auto sector saw weakness due to mixed demand outlook and supply chain challenges.

 

Sector-Wise Performance

 

The technology sector remained under pressure as IT companies struggled amid weak global demand. While Redington India recorded gains, other technology stocks faced resistance due to concerns over reduced corporate spending in major international markets.

The pharmaceutical sector saw mixed results. Akums Drugs & Pharmaceuticals gained 2.16%, closing at ₹573.00, as the company benefited from steady growth in healthcare demand.

The real estate sector remained stable, with Anant Raj and SignatureGlobal recording gains of 2% and 1.89%, respectively. Increased infrastructure projects and government support for housing initiatives helped drive buying interest in select stocks.

 

Macroeconomic Influences on the Market

 

Geopolitical factors played a major role in shaping market sentiment. The proposed U.S. tariffs on steel and aluminum imports raised concerns over potential trade wars and their impact on global economic stability. Market participants remained wary of how such policies would affect industries dependent on international trade.

In addition to trade policies, global corporate mergers and acquisitions declined significantly. The first quarter of 2025 recorded a 30% drop in deal-making activity compared to the previous year. Companies remained hesitant to engage in major transactions due to geopolitical risks, regulatory uncertainties, and fluctuating market conditions.

 

Commodity and Currency Market Trends

 

Gold prices continued their upward trajectory, reaching an all-time high of $2,886 per ounce. The rising uncertainty in global financial markets led to increased demand for safe-haven assets such as gold. Central banks, particularly in China, continued to increase their gold reserves, further pushing prices higher.

Oil prices showed a slight uptick as concerns over supply chain disruptions and geopolitical tensions influenced trading. The global demand outlook remained a key factor in determining future price movements.

The Indian Rupee faced mild depreciation against the U.S. Dollar as global capital outflows from emerging markets affected currency valuations. The fluctuation in exchange rates reflected broader macroeconomic trends and interest rate expectations.

 

Corporate Earnings and Market Sentiment

 

Quarterly earnings reports continued to impact stock prices.

Delhivery saw its stock drop by 5% after reporting weaker-than-expected Q3 earnings. The logistics sector faced headwinds due to rising operational costs and uncertain demand in key export markets.

Varun Beverages reported a strong earnings performance, posting a 36% increase in net profit to ₹195 crore. Revenue also grew by 38.3%, driven by strong demand for beverages and an expansion in distribution networks.

Life Insurance Corporation (LIC) of India saw a decline in its stock price following the announcement of its quarterly results. Analysts lowered their earnings expectations for the company, contributing to the downward movement.

 

Market Outlook for the Week Ahead

 

Investors are expected to remain cautious as they evaluate upcoming economic data and corporate earnings. The stock market will be influenced by global trade policies, central bank decisions, and company performance reports.

Key economic data releases, including inflation figures and industrial production numbers, will play a significant role in market direction. If inflation remains high, central banks may maintain tight monetary policies, potentially impacting liquidity and stock valuations.

With ongoing volatility in global markets, sector-specific trends will determine investment opportunities. Infrastructure and construction companies may continue to attract interest, while technology and steel sector stocks could face headwinds.

Market participants will closely monitor how global economic developments unfold, particularly in response to policy changes in the United States, Europe, and Asia. The week ahead is expected to bring continued fluctuations, requiring a well-balanced approach to portfolio management.