
JSW Steel, Vedanta, Tata Steel and other metal stocks drop up to 2% as Trump doubles tariffs to 50%
While it's not just metal counters facing selling pressure on Dalal Street today, the red wave swept across the board as global trade tensions resurfaced, triggering risk-off sentiment among investors. US President Donald Trump last week intensified trade tensions, announcing he would double tariffs on steel and aluminum imports and accusing China of violating a prior agreement to ease tariffs.
Speaking at a rally in Pennsylvania, Trump said the US would raise steel tariffs from 25% to 50% starting next week while highlighting the partnership between Japan's Nippon Steel and US Steel.
Later, taking to his Truth Social account, Trump wrote, 'It is my great honor to raise the tariffs on steel and aluminium from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. MAKE AMERICA GREAT AGAIN!'
The announcement comes amid an ongoing legal battle over the legality of some of Trump's tariff policies. An appeals court has allowed the case to proceed after the Court of International Trade ordered a halt to the taxes.
Trump accused China of violating a tariff truce reached in early May—a claim Beijing rejected, countering with accusations of US wrongdoing. China, the world's largest steel producer and exporter, has seen its steel exports to the US decline significantly since the 25% tariff was imposed in 2018.
While India's exports of steel and aluminium to the US are limited, the drop in metal stocks occurred amid growing concerns that a potential rise in tariffs could impact global metal demand.
A call between Trump and Chinese President Xi Jinping is expected later this week in a possible effort to ease trade tensions. On the economic front, Chinese factory activity data contracted at a slower pace in May than the month prior, also aiding the selling pressure in metal stocks today.
As tariff headlines once again dominate global markets, Asian indices opened in the red on Monday, with the Nifty 50 and Sensex falling nearly 1% in early trade. Rising geopolitical tensions between Ukraine and Russia also pushed investors toward safe-haven assets, leading to a sharp decline in equities.
According to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market structure currently supports a continuation of the ongoing consolidation phase. He noted that global headwinds—particularly renewed tariff concerns—are likely to restrain any breakout rally. However, strong domestic tailwinds may offer support at lower levels.
He added that the recent announcement of 50% tariffs on steel and aluminium by President Trump signals ongoing uncertainty in the global trade environment, which may act as a significant headwind for markets. On the domestic front, however, factors such as better-than-expected Q4 GDP growth at 7.4%, improving trends in consumption and capital expenditure, low inflation, and the prospect of continued rate cuts present a solid foundation for sustained economic growth in FY26.
The only near-term challenge, he pointed out, is weak earnings growth. If leading indicators begin to reflect a recovery, the market has a strong chance of breaking out of its current range and moving higher.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Business Standard
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- Business Standard
This MFI lender's stock soars 7% even as Q1 profit plunges; Here's why
Shares of CreditAccess Grameen rose over 7 per cent on Wednesday even after the company reported an 85 per cent year-on-year (Y-o-Y) to ₹60.2 crore for the quarter ended June 2025 (Q1FY26). The micro finance lender's stock rose as much as 7.05 per cent during the day to ₹1,370 per share. The stock pared gains to trade 5.3 per cent higher at ₹1,347 apiece, compared to a 0.43 per cent advance in Nifty 50 as of 1:10 PM. Shares of the company have been range-bound since July, and at day's high, the stock was at the highest level since July 2, 2024. The counter has risen 52 per cent this year, compared to a 6.2 per cent advance in the benchmark Nifty 50. CreditAccess Grameen has a total market capitalisation of ₹21,496.25 crore, according to BSE data. CreditAccess Grameen Q1 results The microfinance lender's net profit declined 85 per cent Y-o-Y primarily to ₹60.2 crore contraction in net interest income and higher provisioning. Sequentially, the net profit rose 27.5 per cent from Rs 47.2 crore in the quarter ended March 2025 (Q4FY25). The lender's net interest income (NII) declined 1.6 per cent to ₹937 crore. Sequentially, NII grew 7 per cent from ₹876.1 crore in Q4FY25. Its net interest margin (NIM) dropped to 12.8 per cent in Q1FY26 from 13.0 per cent in Q1FY25. However, it improved from 12.7 per cent in Q4FY25. The company's gross non-performing assets (NPAs) rose sharply to 4.70 per cent as of June 2025, up from 1.46 per cent a year ago. It, however, declined from 4.76 per cent at the end of March 2025. Analysts bullish on CreditAccess Grameen While the microfinance industry (MFI) is still navigating stress, JM Financial believes CreditAccess Grameen is best positioned to recover early. This is due to its strong stress recognition framework, along with an accelerated write-off policy and high expected credit loss coverage. Management expects elevated credit costs to persist in Q2FY25, before moderating to 3-3.5 per cent in the second half of FY25. FY26 guidance for loan growth and return on equity (RoE) has been maintained at 14-18 per cent and 11.8-13.3 per cent, respectively, with stronger momentum expected in the second half, particularly from the retail finance book. JM Financial expects around 15 per cent assets under management CAGR over FY25-27. Given the improving outlook, the brokerage has upgraded the stock to 'Buy' and revised the target price to ₹1,475. Analysts at Motilal Oswal said that the lender has successfully navigated a period of industry-wide challenges, demonstrating remarkable resilience and a return to normal operational efficiency. The company will continue to prioritise balance sheet normalisation through accelerated write-offs and prudent provisioning, it said.


The Hindu
11 minutes ago
- The Hindu
How Karnataka's artisans strive to stay afloat sans a middleman
The recent years have seen a surge in the demand for traditionally handcrafted home decor. Brassware, wooden idols, handmade lamps, rugs and more are being marketed as 'minimalist aesthetic' on various social media platforms and weekend pop-ups. Minimalism, referring to a lifestyle of intentionally living with only essentials rather than focusing on appearances, has led to a boom in the Aesthetic Economy. The gleaming finish of various handicrafts in Karnataka's newly constructed urban houses raises the question of who really benefits from it. At a hushed weaving unit in Bengaluru, Nanditha Sulur's team consists of 15 weavers who make rugs, pure silk and cotton silk sarees using traditional pit looms. 'As home decor becomes more popular, people tend to focus on the price and beauty of the product without taking into consideration the creator or the time it took to make it,' says Nanditha, owner of Indu Silks and Sarees in Bengaluru. By removing intermediaries, Nanditha ensures her customers pay fairly, instead of exorbitant prices. When determining prices, the cost of raw materials and complexity of designs are factored in, as well as daily wages for workers. 'I've seen my saris being sold at much higher prices in other outlets, which is why I made sure to eliminate the middlemen,' she says. 'People want a handmade finish at mass-produced rates,' says Jeenal Desai, founder of Clayodyssey in Bengaluru, commenting on the home decor trend. She explains, 'I have tried to sell my pottery through middlemen twice but since they add a 30% charge, it becomes more expensive.' Heritage and handiwork Artisanal hubs such as Channapatna and Bidar, which once reflected Karnataka's cultural heritage and craftsmanship, are struggling to remain relevant due to new marketing techniques. 'The National Institute of Design and National Institute of Fashion Technology have helped artisans reinvent their products, enabling them to reach a broader global market. Dolls that were traditionally made have now become educational tools, pen holders, and showpieces,' says HR Rajappa, Managing Director (MD), Karnataka State Handicrafts Development Corporation (KSHDC). 'Channapatna toys have become much more than just toys. From napkin rings to chandeliers, Channapatna artisans are developing designs using innovative colours and shapes,' says Karthik, founder of Varnam Craft Collective. Varnam, which has been collaborating with Channapatna artisans for over a decade, observes that the demand from city buyers and foreign customers for customised products is time-consuming and results in a lower yield return for the artisans. Middlemen continue to wield power in numerous craft ecosystems by setting up units and gaining more profit. Though traditional handicrafts have begun to decorate Indian homes, many consumers remain unaware of their origin. 'Artisans using banana fibre and sandalwood are slowly being replaced by the Western or Korean products in marketplaces and metro station stalls,' adds M Mandal, Manager Development, KSHDC. A fine balance While keeping up with the times is important, one should not stray far off the mark where culture is concerned. Commenting on this ironic loss of tradition, Shejal Tewari, chief aide for an independent documentary on Karnataka's handlooms that is currently in production, says, 'A line should be drawn if artisans are being forced to commit to a trend which may fade away eventually.' She mentions the 'two-minute sari' with readymade pleats. 'It is functional, but a sari is not just a garment. The whole experience of learning how to drape it from your mothers and sisters is taken away. Such trends cannot carry the value of stories and memories forward.' 'The term 'sustainability' is often used as a marketing gimmick without taking into account the production process of each handicraft,' says Karthik. 'Even though the forests are regulated, the use of wood is still necessary for handicrafts such as Channapatna toys, which means they cannot be termed sustainable.' 'Culture and tradition seem to exist within spaces that are not doing well financially, and while they have a few patrons, the ones actually using their hands and sitting at the loom, are from villages and financially backward areas. No funds are provided taking that into consideration,' says Shejal. She adds how knowledge handed down over generations, is being eradicated as artisans do not want their children to take up the family craft. 'They'd rather see their sons as street vendors than learn the craft. It is not about money anymore, it is a social concern.' Baby steps 'The KSHDC works towards preserving and protecting Karnataka's rich tradition of craftsmanship,' says Rajappa, adding, 'Each piece has a set price that is not arbitrary. The price is calculated by a committee comprising officers and master artisans, who take into consideration the skill, material value, and workmanship it entailed.' He goes on to explain how accommodationshave been built in Kalanagar a at Channapatna to support artisans. These homes are provided with subsidies and are rented for ₹155 per month through 25-year EMIs. Similarly, Bidriware artisans working with blackened zinc and inlaid silver, have adapted to crafting corporate gifts and home decor. Through Cauvery Handicrafts and its e-commerce portal, the government provides support to artisans and minimises the involvement of middlemen. Even as the KSHDC's influence stretches across Karnataka, craftsmen in smaller towns still struggle without funds and support. A few such as Prakash Cannappa Ganiger, an artisan at Krishikala Handicrafts based in Mysore, have taken matters into their own hands. 'We train local women in Yarebudihal at grassroot level, thereby forming a self-help group or a sangha.' Though sales happen through melas, exhibitions and social media plans help widen their reach. 'Despite the challenges faced by rural artisans due to financial disparity, there is hope as now consumers increasingly favour products created using ecological and sustainable practices,' says Prakash. Boon and bane Mahalasa Prashant, who runs Adhya creations in Bengaluru, says online platforms such as Dhruti Mahila Marukatte and Facebook provide opportunities for women entrepreneurs to promote and sell their crafts. She emphasised the need for a tight-knit social circle among independent artisans, especially when dealing with common issues they face, including haggling and plagiarism. Mahalasa says, 'Once, I found a screenshot of a custom nameplate I had made, posted on another account for sale. On confronting them, they denied the allegation and deleted the post. In this sea of social media you can never keep track of such accounts.' The fickleness of trends is as significant as their far-reaching impact. The subtle loss of heritage, tradition and identity loom large as artisans and their consumers subconsciously call for makeovers.
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First Post
11 minutes ago
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Watch: PM Modi embarks on 4-day visit to UK, Maldives; trade, defence ties in focus
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