Shares of India’s major steel
companies jumped between 2% and 4% on Wednesday, a day after New
Delhi imposed import tariffs on some steel products as the
government aims to curb cheap shipments from China.
Shares of India’s top steel makers Tata Steel and
JSW Steel jumped 3.5% and 2.7%, respectively, topping
the gainers on benchmark Nifty 50 index, which rose
0.3%.
The metal stocks gained as much as 1.4% to hit a
fresh record of 11,164.40 points. The sectoral index has risen
in twelve of the 14 previous sessions, driven by optimism over
firm commodity prices.
Steel Authority of India, Jindal Stainless
, and Jindal Steel also rose between 2.5% and
3.6%.
The levy, locally known as a safeguard duty, will be imposed
at 12% in the first year followed by 11.5% in the second year
and then 11% in the third year.
The Directorate General of Trade Remedies recommended the
three-year duty after finding a “recent, sudden, sharp and
significant increase in imports … causing and threatening to
cause serious injury to the domestic industry”, a finance
ministry order published on Tuesday said.