Tata Steel, JSW Steel gain as India moves to curb cheap steel imports

Shares of major Indian steelmakers rose between 2% and 4% on Wednesday, a day after the Centre imposed import tariffs on select steel products in a move aimed at curbing low-priced shipments from China.

Tata Steel and JSW Steel climbed 3.5% and 2.7%, respectively, emerging among the top gainers on the benchmark Nifty 50 index, which rose 0.3%.

The broader metal index gained as much as 1.4% to hit a fresh record high of 11,164.40 points. The sectoral index has advanced in 12 of the previous 14 sessions, supported by optimism around firm commodity prices.

Shares of Steel Authority of India, Jindal Stainless and Jindal Steel also rose between 2.5% and 3.6% during the session.

The levy, locally referred to as a safeguard duty, will be imposed at 12% in the first year, followed by 11.5% in the second year and 11% in the third year.

The Directorate General of Trade Remedies had 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,” according to a finance ministry order published on Tuesday.