Steel Stocks Rise On Imposition Of Safeguard Duty

New Delhi: Steel stocks rallied in early trade on Tuesday after imposition of a 12 per cent provisional safeguard duty for 200 days on five steel product categories. India on Monday imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in imports. Shares of Tata Steel climbed 2.62 per cent, Jindal Stainless advanced 2.57 per cent, Steel Authority of India Ltd rallied 2.54 per cent, JSW Steel jumped 2.45 per cent and Jindal Steel & Power Ltd went up by 1.89 per cent on the BSE.

The decision follows a recommendation for the same by the Commerce Ministry’s investigation arm DGTR. Last month, the DGTR suggested to impose the duty. “...the Central Government after considering the said findings of the Director General (Trade Remedies), hereby imposes...a provisional safeguard duty at the rate of twelve per cent ad valorem,” according to a notification of the Dept of Revenue. It said that the safeguard duty imposed under this notification shall be effective for a period of 200 days from the date of publication of this notification.

In the equity market, the 30-share BSE benchmark Sensex climbed 348.01 points to 79,744.93 during the morning trade. The NSE Nifty went up by 89.40 points to 24,214.95.