Mumbai, Sep 30 The shares of media and entertainment companies like Prime Focus Limited and PVR Inox Limited fell up to 5 per cent during the intra-day trade on Tuesday after US President Donald Trump announced imposing a 100 per cent tariff on movies made outside the United States.
The move will likely impact Indian companies that export films in various domestic languages to the US. These companies get immense business from the diaspora.
The shares of Prime Focus Limited fell 5 per cent to hit a lower circuit at 175.94 on NSE. The stock opened slightly down at Rs 184.98 in the morning against last session's closing of Rs 185.20. The scrip fell by over 5 per cent in a week. However, in the last 30 days, it rose by over 21 per cent.
Similarly, shares of PVR Inox dropped over 3 per cent in early trading. The scrip opened at Rs 1,090 per share on NSE against last session's closing of Rs 1,100.90. The stock extended the loss following selling in media stocks to hit an intraday low at Rs 1,067.70.
Meanwhile, Nifty Media Index fell by over a per cent. At around 1:41 pm, the index was trading at 1,540.80, down 1.36 per cent.
Earlier, the US President said on the social media platform Truth Social that other countries have "stolen our movie-making business from the United States of America, just like stealing candy from a baby".
Further, Trump said that he will be imposing a 100 per cent Tariff on any and all movies that are made outside of the United States in order to solve this long-standing, never-ending problem.
The threat of tariffs was first raised by the US president in May. Nevertheless, no implementation schedule has been provided.
The new announcement came in addition to fresh 100 per cent tariffs imposed by the US administration on certain pharmaceutical products.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor