Tata Steel, JSPL, JSW Steel, SAIL shares gain as govt imposes 12% safeguard duty
Tata Steel gained 1.04 per cent to Rs 140.63. SAIL added 1.25 per cent to Rs 117.44. JSPL advanced 0.92 per cent to Rs 914.70. JSW Steel edged 0.37 per cent higher to Rs 1,037.80.
- Apr 22, 2025,
- Updated Apr 22, 2025 10:30 AM IST
Shares of Tata Steel Ltd, JSW Steel Ltd, SAIL, and Jindal Steel & Power Ltd rose in Tuesday’s trade following the government's announcement of a 12 per cent provisional safeguard duty on select steel products. The move aims to shield the domestic industry from a recent surge in imports. The duty took immediate effect and will remain in place for 200 days, unless withdrawn earlier.
Following the development, shares of Tata Steel gained 1.04 per cent to Rs 140.63. SAIL added 1.25 per cent to Rs 117.44. JSPL advanced 0.92 per cent to Rs 914.70. JSW Steel edged 0.37 per cent higher to Rs 1,037.80. Against a flattish BSE Sensex, the BSE Metals index was up 268.32 points or 0.92 per cent at 29,516.91.
Union Minister for Steel and Heavy Industries, HD Kumaraswamy, affirmed that his ministry remained committed to working collaboratively with all stakeholders to ensure that the Indian steel sector remains resilient, self-reliant, and globally competitive.
He described the decision to impose a 12 per cent safeguard duty on the import of certain non-alloy and alloy steel flat products as a timely and necessary measure to protect domestic manufacturers from the adverse effects of surging imports and to uphold fair competition in the market.
“This move will provide critical relief to domestic producers, particularly small and medium-scale enterprises, who have been under immense pressure due to rising imports. The safeguard duty will help restore market stability and bolster the confidence of the domestic industry,” the Minister stated.
Kotak Institutional Equities in a strategy note this month said it finds Indian steel producers better placed than aluminum producers. It expected China to stimulate the domestic economy in H2 2025 to counter weaker exports, which should improve the real estate and steel cycles.
In India, the recent price strength suggests strong earnings momentum in the coming quarters. Aluminum is more exposed to world ex-China demand and the ongoing correction in the alumina price has reduced the cost support, it said.
Among steel players, Kotak preferred steel converters or non-integrated steel producers (JSPL and JSW Steel) over integrated players such as Tata Steel and SAIL, as we expected iron ore prices to remain under pressure, with growing protectionism against Chinese steel exports.
Shares of Tata Steel Ltd, JSW Steel Ltd, SAIL, and Jindal Steel & Power Ltd rose in Tuesday’s trade following the government's announcement of a 12 per cent provisional safeguard duty on select steel products. The move aims to shield the domestic industry from a recent surge in imports. The duty took immediate effect and will remain in place for 200 days, unless withdrawn earlier.
Following the development, shares of Tata Steel gained 1.04 per cent to Rs 140.63. SAIL added 1.25 per cent to Rs 117.44. JSPL advanced 0.92 per cent to Rs 914.70. JSW Steel edged 0.37 per cent higher to Rs 1,037.80. Against a flattish BSE Sensex, the BSE Metals index was up 268.32 points or 0.92 per cent at 29,516.91.
Union Minister for Steel and Heavy Industries, HD Kumaraswamy, affirmed that his ministry remained committed to working collaboratively with all stakeholders to ensure that the Indian steel sector remains resilient, self-reliant, and globally competitive.
He described the decision to impose a 12 per cent safeguard duty on the import of certain non-alloy and alloy steel flat products as a timely and necessary measure to protect domestic manufacturers from the adverse effects of surging imports and to uphold fair competition in the market.
“This move will provide critical relief to domestic producers, particularly small and medium-scale enterprises, who have been under immense pressure due to rising imports. The safeguard duty will help restore market stability and bolster the confidence of the domestic industry,” the Minister stated.
Kotak Institutional Equities in a strategy note this month said it finds Indian steel producers better placed than aluminum producers. It expected China to stimulate the domestic economy in H2 2025 to counter weaker exports, which should improve the real estate and steel cycles.
In India, the recent price strength suggests strong earnings momentum in the coming quarters. Aluminum is more exposed to world ex-China demand and the ongoing correction in the alumina price has reduced the cost support, it said.
Among steel players, Kotak preferred steel converters or non-integrated steel producers (JSPL and JSW Steel) over integrated players such as Tata Steel and SAIL, as we expected iron ore prices to remain under pressure, with growing protectionism against Chinese steel exports.