Steel stocks Tata Steel, Jindal Stainless, SAIL (Steel Authority of India Limited), Kalyani Steel, Kalyani Forge, etc gained in the range of 1-5 per cent today morning even as the broader market saw heavy selling pressure.
Analysts said steel stocks attracted buying support as the government has cut the export duty on steel products and iron ore.
The relief in duty, effective from last Saturday, is expected to give a boost to domestic steel companies.
Jindal Stainless rose 6. 54 per cent to Rs 177.50 on BSE, while public sector Steel Authority of India gained 2.30 per cent at Rs 82.45.
Kalyani Steel was trading 3 per cent higher at Rs 328.00. Tata Steel was up 0.28 per cent.
JSW Steel was, however, trading 0.64 per cent lower at Rs 703.95.
The sectoral index, BSE metal index, was down 0.30 per cent.
The benchmark BSE Sensex lost about 500 points, tracking weakness in SGX Nifty and other Asian indices. Analysts attributed the weak sentiment to the “harsh tone” of Fed officials over the weekend.
Federal Reserve Governor Christopher Waller’s statement that markets were “way out in front” and that rates will not fall until there is “clear, strong” evidence inflation is falling.
Steel stock attracted buying support after the central government withdrew export duty on iron ore lumps and fines on below 58 per cent Fe content, iron ore pellets, and the specified. The import duty concessions on anthracite/ PCI coal, coking coal, coke, semicoke, and ferronickel have also been withdrawn.
Exports of iron ore lumps and fines of less than 58 per cent Fe (iron content) will attract nil export duty.
Exports of iron ore lumps and fines of more than 58 per cent Fe will attract lower export duty of 30%.
Exports of iron ore pellets will attract nil export duty.
Earlier in May this year, export duty was hiked in the wake of a rise in prices of steel.