Invest in Tata Steel, JSW Steel, SAIL shares, know why
tata steel share price, SAIL share price, jsw steel share price: Top metal stocks were under immense pressure on Monday following the government’s decision to impose export duty on steel products.
Nifty Metal index tumbled over 7% in early trade as JSW Steel, Tata Steel hit the lower circuits, while state-run Steel Authority of India (SAIL) lost over 10% to 52- reached the low of the week. Hindalco too fell over 5 per cent.
At 11 am, the share price of Tata Steel was trading at Rs 1,039, down over 11% on the NSE. JSW Steel fell over 12% to 52-week low of Rs 554. Similarly, Sell was trading at Rs 74 after crashing over 9.50%.
Metal stocks are already facing heat due to geopolitical tensions and Nifty Metal has corrected over 15% in the past one month.
The government on Saturday waived customs duty on imports of certain raw materials, including coking coal and ferronicals, used by the steel industry, a move that will reduce costs and lower prices for the domestic industry. In addition, to increase domestic availability, duty on export of iron ore was raised to 50 per cent and some steel intermediaries to 15 per cent.
Steel manufacturers’ body Indian Steel Association (ISA) said in a statement that the imposition of export duty on steel would send a negative signal to investors in the steel sector and would adversely affect the capacity utilization of the sector.
“India may now lose export opportunities and this decision may also affect the overall economic activity in the country,” the association said.
Besides, imposition of export duty would help other countries to increase their share in the global market, which India would vacate, the ISA said, adding that rebuilding the lost ground could take a very long time, as supply chains would be disrupted, while India’s reputation as a reliable exporter will be affected.