Metal Sector Advances as Steel Import Duty Takes Effect

Market Performance

The Nifty Metal index continued its positive trajectory, extending gains for the sixth consecutive trading session. On Tuesday, April 22, the index rose by 1.5%, reaching an intraday high of 8,783. Around 9:30 AM, it stood 1.22% higher at 8,759, with all 15 constituent stocks trading in the green.

Main News

The Indian government has imposed a 12% safeguard duty on steel imports, aiming to relieve the domestic steel industry. According to an official announcement made from the Ministry of Finance, the measure will take effect on April 21 and remain in force for 200 days.

This decision responds to rising concerns over low-cost steel imports impacting local production. The safeguard duty is intended to stabilize the market and support domestic manufacturing by addressing potential pricing disparities caused by international supply pressures.

Company Details

A broad set of companies across the metal sector responded positively to the policy move, registering gains in early trade. Notable performers with increases ranging between 1% and 2% included:

• Tata Steel
• Jindal Stainless
• Steel Authority of India Limited (SAIL)
• Jindal Steel & Power
• JSW Steel

Other listed firms include:

• National Aluminium Company
• Vedanta
• Lloyds Metals and Energy
• Hindustan Copper
• Adani Enterprises
• Hindalco Industries
• NMDC

Also, recorded gains were between 0.5% and 2% during the morning session.

Summary

The recent implementation of a 12% safeguard duty on steel imports has had a noticeable impact on the Indian metal sector. The duty, designed to mitigate the impact of low-cost imports and promote domestic stability, contributed to the continued rally in the Nifty Metal index. With all component stocks trading positively, the market reflected broad-based investor optimism within the sector following the government's protective trade measure.