Shares of steelmakers such as SAIL, Tata Steel Ltd, JSW Steel and Jindal Stainless rallied up to 5% on Wednesday after the Directorate General of Trade Remedies (DGTR) recommended the imposition of a 12 percent provisional safeguard duty ad valorem for 200 days on select steel products.
SAIL shares were the top gainers among steel maker stocks, rising 5% to Rs 114.40 against the previous close of Rs 108.90 on BSE. Market cap of the firm climbed to Rs 46,731 crore.
Tata Steel stock rose 3% to Rs 159.25 against the previous close of Rs 154.65 on BSE. Market cap of the firm climbed to Rs 1.97 lakh crore.
Shares of another leading steelmaker JSW Steel rose nearly 3% to Rs 1047.75 on BSE. Market cap of the firm climbed to Rs 2.51 lakh crore.
Jindal Stainless shares too climbed 2.35% to an intra day high of Rs 663.70.
Shares of Hindustan Zinc also surged 9.4% to Rs 477.65 on BSE. HZL is not steelmaker but it supplies zinc, which is used for galvanizing steel, a process that protects steel from corrosion.
BSE metal index was among the top gainers among the 19 sectoral indices on BSE. The index rallied 500 pts to 31,091 against the previous close of 30,591.
The suggestion to impose safeguard duty comes after the authority noticed that there has been a sudden rise in the imports of these products into India. This was likely to hurt margins of domestic steelmakers.