Mar 23: Equity markets continued to weaken on Friday with the threat of global trade war looming large as US continues to impose punitive measures against import of Chinese and Indian goods. BSE Sensex lost close to 500 points and seen at 32,525.83 in morning trade while Nifty fell sharply to 9,965.35.
Metal stocks were badly hurt with Steel Authority of India Ltd (BSE:500113, NSE: SAIL) down 7.73% to 68, Tata Steel (BSE:500470, NSE: TATASTEEL) down 3.88% to Rs 558, Hindalco industries (BSE:500440, NSE: HINDALCO) down 3.77% to Rs 208.10, Hindustan Zinc Ltd (BSE: 500188, NSE: HINDZINC) down 4.54% to Rs 298.30, Vedanta Ltd (BSE:500295 NSE: VEDL) down 4.55% to Rs 277.90, Hindustan Copper (BSE: 513599, NSE:HINDCOPPER) down 7.87% to Rs 67.90, National Aluminum Company Ltd (BSE:532234, NSE: NATIONALUM) down 4.50% to Rs 65.85, Jindal Steel Power Ltd (BSE:532286, NSE: JINDALSTEL) down 8.12% to Rs 206.50 and JSW Steel Ltd (BSE: 500228, NSE: JSWSTEEL) down 3.09% to Rs 277.10.
It may be recalled that the Trump Administration had decided to slap an anti-dumping duty on the stainless steel flanges imported from China and India after it found in its preliminary probe that both the countries had provided subsidies to exporters. In January, the US had slapped anti-dumping dutyies on finer denier polyester staple fibre form China and India after the Department of Commerce found exporters from both countries received subsidies of 41.73% to 47.55% and 9.50% to 25.28% respectively. Commerce Department had noted that exporters from China and India have sold stainless steel flanges in the US at 257.11% and 18.10% to 145.25% less than fair value respectively.
Recently, USA had raised the anti-dumping duty on shrimp exports from India from 0.84% to 2.34%. The anti-dumping duty for Vietnamese Shrimp was raised from 4.78% to 25.39% which could affect India’s export of shrimp to Vietnam for further value addition and exports.
Seafood exporters in India were of the view that India’s exports to USA may not be impacted by raised anti-dumping duty on shrimp as Indian shimp was in huge demand in USA which is the largest market for Indian seafood.