Shares of Tata Steel, Jindal Steel, JSW Steel and Jindal Steel and Power jumped around 2 per cent to on BSE today ahead of Budget 2025. Tata Steel stock traded at Rs 135.75 against the previous close of Rs 134.65. Jindal Steel and Power stock gained 1.97% at Rs 807.45 against the previous close of Rs 791.85.
Shares of JSW Steel rose 0.66% to Rs 951.70 against the previous close of Rs 944.45 on BSE. Steel Authority of India also added nearly 1% to Rs 108.35.
The rally in steel stocks came as the industry has called for imposition of safeguard duty on steel imports, focus on government capex and infrastructure. This will lead to the promotion of domestic steel sector-higher demand and protect domestic prices compared to steel import prices.
Axis Securities also expects imposition of safeguard duty on imports to mitigate the impact of low-cost foreign steel. Any new announcement towards this will be keenly watched, said the brokerage.
The steel industry also expects fiscal incentives related to the import of critical raw materials such as coking coal. According to Axis, it has more expectations from Budget 2025 such as investments to develop transportation networks to facilitate smoother supply chains and support to shift to green steel production methods.
Emkay Global outlined the need for protectionist moves on select sectors such as steel. Safeguard duty on flat steel is among the key expectations in the Budget preview report by the brokerage.