Steel Stocks Surge Following Safeguard Duty Announcement

Steel stocks spiked in response to the Indian government's imposition of a 12% provisional safeguard duty on five steel product categories for 200 days. This measure aims to protect domestic industries from rising imports. Tata Steel and other major companies experienced significant share price increases.

Steel stocks experienced a significant rally in early trading on Tuesday. The spike followed India's announcement of a 12% provisional safeguard duty, effective for 200 days, on five steel product categories. These include hot rolled coils, sheets, and plates, part of a move to shield domestic industries from a surge in imports.

This decision led to considerable gains for major steel companies. Tata Steel's shares rose by 2.62%, while Jindal Stainless and Steel Authority of India Ltd saw increases of 2.57% and 2.54% respectively. JSW Steel's shares climbed by 2.45%, and Jindal Steel & Power Ltd gained 1.89% on the BSE.

The imposition of the duty was recommended by the Commerce Ministry's investigation body, the Directorate General of Trade Remedies (DGTR). The duty is set to remain in place for 200 days unless otherwise amended. Following the announcement, the BSE Sensex rose by 348.01 points and the NSE Nifty by 89.40 points in the morning trading session.

(With inputs from agencies.)