Shares of steel and aluminium producing companies experienced significant declines on Thursday, with the Nifty Metal index dropping over 3% to an intraday low of 11,052.55. This decline was driven by reports that the Trump administration may introduce a 25% tariff on finished goods containing imported steel and aluminium, shifting from the current 50% tariff that applies only to the value of the metals used. Major companies like Hindustan Copper, Tata Steel, and Steel Authority of India saw their stocks fall over 2%. The broader market, represented by the NSE Nifty50, also declined by 1.45%, reflecting ongoing geopolitical tensions, particularly the conflict involving the US, Israel, and Iran. Analysts from Axis Securities highlighted that disruptions in the Strait of Hormuz could impact supply chains, particularly for companies reliant on gas-based Direct Reduced Iron (DRI) technology. JSW Steel is particularly at risk of operational disruptions, while integrated steel producers like Tata Steel are expected to maintain primary operations with minimal impact. Meanwhile, aluminium producers such as Hindalco may face input cost pressures due to rising thermal coal prices, despite stable aluminium prices supported by Middle Eastern supply.