Shares of cables and wires companies also witnessed sharp selling, with top players Polycab India, KEI Industries, RR Kabel, and Havells India falling up to 2%.
Shares of copper-related companies - Hindalco Industries, Hindustan Copper, Vedanta, and others - remained in focus today after global copper prices surged over 10% overnight to reach a new all-time high of $12,330 per metric ton. The sharp rally was driven by U.S. President Donald Trump’s announcement of a 50% tariff on copper imports on Tuesday.
Weighed down by steep tariffs on copper imports, shares of Hindalco Industries declined as much as 1.2% to ₹677.55, while Hindustan Copper share price tumbled 3.5% to ₹264.10 on the BSE. Vedanta shares also slipped 1.3% to ₹450 apiece in the first hour of trade so far. Meanwhile, the equity benchmarks, the BSE Sensex and NSE Nifty, were trading flat with a negative bias, tracking mixed cues from global market amid fresh concerns about Trump reciprocal tariffs.
Shares of cables and wires companies also witnessed sharp selling, with top players Polycab India, KEI Industries, RR Kabel, and Havells India falling up to 2%.
The sharp rise in tariff on copper imports can have indirect but significant implications for Indian wires and cable manufacturers as it is largest raw material input for them, accounting for 70–80% of raw material cost. While some large players hedge copper prices or pass through costs via contracts, but higher input costs could compress margins, especially if companies cannot pass on the increase to customers quickly.
The proposed copper tariff is part of a broader plan targeting specific sectors, with pharmaceuticals and semiconductors also reportedly under consideration for additional duties. Back in late February, Trump had instructed the U.S. Commerce Secretary to initiate an investigation into foreign copper imports under Section 232 of the Trade Expansion Act.
Meanwhile, investors will also assess U.S. President Donald Trump’s latest threat to impose an additional 10% tariff on countries aligning with BRICS, a bloc comprising ten nations: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. Trump on Tuesday said that members of the BRICS bloc, including India, will be subject to 10% additional tariffs.
“BRICS was set up to hurt us, degenerate our dollar and take it off as a standard. That’s okay if they want to play that game. But I can play that game too. Anybody that’s in BRICS is getting a 10% charge. If they are a member of BRICS, they are going to have to pay 10% tariff,” Trump told reporters.
This came after the White House ruled out any further extension of the August 1 tariff deadline. Trump has already announced a new wave of country-specific blanket tariffs ranging from 25% to 40% on imports from a group of 14 countries, including Japan, South Korea, Malaysia, Indonesia, Bangladesh, South Africa, Thailand, and others. The move has reignited concerns over escalating trade tensions, putting pressure on global equity markets and risk sentiment.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)
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