Safeguard Duty Boosts Steel Stocks: A 200-Day Relief

Steel stocks saw a surge following the Directorate General of Trade Remedies' proposal to apply a 12% provisional safeguard duty on certain steel products for 200 days to curb rising imports. This move aims to protect local producers from competitive foreign imports and has bolstered investor confidence.

In a significant development for the steel industry, stocks soared on Wednesday following a recommendation by the commerce ministry's Directorate General of Trade Remedies (DGTR) to impose a 12% provisional safeguard duty on certain steel imports for 200 days. This measure aims to shield domestic manufacturers from the flood of cheaper imports.

Steel stocks, including NMDC Steel, Steel Authority of India, and Tata Steel, witnessed notable gains, with Tata Steel leading the surge on the Sensex. The 30-share BSE Sensex rose by 147.79 points, and the NSE Nifty gained 73.30 points, reflecting investor optimism.

The DGTR's recommendation came after investigations into a sharp increase in imports of non-alloy and alloy steel flat products. The final decision lies with the finance ministry, but the provisional measure has already sparked a positive response in the market, signaling relief for the domestic steel sector.

(With inputs from agencies.)