The center has reduced export duties on steel products and iron ore. (File)
New Delhi:
Steel shares of Tata Steel, Jindal Stainless, SAIL (Steel Authority of India Limited), Kalyani Steel, Kalyani Forge, etc. rose 1-5 percent today even as the broader market saw heavy selling pressure.
Analysts said steel stocks received buying support as the government cut export tariffs on steel products and iron ore.
The tax exemption, which takes effect last Saturday, is expected to boost domestic steel companies.
Jindal Stainless rose 6.54 percent to Rs 177.50 on BSE, while the public sector Steel Authority of India gained 2.30 percent at Rs 82.45.
Kalyani Steel traded 3 percent higher at Rs 328.00. Tata Steel rose 0.28 percent.
However, JSW Steel traded 0.64 percent lower at Rs 703.95.
The sectoral index, the BSE metal index, fell by 0.30 percent.
The benchmark BSE Sensex lost about 500 points following the weakness in SGX Nifty and other Asian indices. Analysts attributed the weak sentiment to the “hard tone” of Fed officials over the weekend.
Federal Reserve Governor Christopher Waller’s statement that markets were “way ahead” and that interest rates will not fall until there is “clear, strong” evidence that inflation is falling.
Steel stocks received buying support after the central government lifted export tariffs on iron ore ingots and fines on iron ore less than 58 percent grade, iron ore pellets and the like. The import duty concessions on anthracite/PCI coal, coking coal, coke, semicoke and ferro-nickel have also been withdrawn.
No export duty is levied on the export of lumps and fine iron ore of less than 58 percent Fe (iron content).
A lower export duty of 30 percent is levied on the export of lumps and fine iron ore of more than 58 percent Fe.
No export duty is levied on the export of iron ore pellets.
Earlier in May this year, export duties were increased due to an increase in steel prices.
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