Shares of major Indian steel companies, including Tata Steel, SAIL, JSPL, and JSW Steel, saw notable gains [1] in Wednesday’s morning trades, following India’s firm stance against U.S. tariffs at the World Trade Organization (WTO).
Tata Steel led the rally, with its share price opening at ₹151.20, slightly above the previous day’s close of ₹149.50, before climbing to an intraday high of ₹157.15, marking a 4.5% gain. Similarly, SAIL’s share price rose from ₹116.85 at opening to ₹120.75, reflecting a 4% increase. JSPL and JSW Steel also recorded gains of 2-3% during early trading.
The Nifty Metal Index, driven by steel stocks, surged to an intraday high of 9,085.05, translating to a 2.8% increase. Other metal stocks, including NALCO and Hindalco Industries, also gained over 4%, reinforcing the sector-wide momentum.
The surge in steel and metal stocks is attributed to India’s strong response to U.S. tariffs on steel and aluminum imports. According to reports, India has proposed retaliatory taxes on U.S. imports worth $7.6 billion, with an estimated $1.91 billion in duty revenue expected to be collected.
India argues that the U.S. tariffs violate the 1994 General Agreement on Tariffs and Trade (GATT) and the Agreement on Safeguards (AoS). The country has asserted its right to suspend concessions or impose equivalent countermeasures to mitigate the adverse effects on its steel exports.
While India and the U.S. continue discussions on tariff disputes, positive developments in U.S.-China trade talks have further boosted investor sentiment. China, the world’s largest producer and consumer of commodities, plays a crucial role in influencing global steel prices. Any resolution in U.S.-China tariff negotiations is expected to benefit Indian steelmakers by stabilizing international commodity markets.
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[1] Tata Steel, SAIL, JSPL, JSW Steel rise up to 4% after THIS India’s snub to US at WTO https://www.livemint.com/market/stock-market-news/tata-steel-sail-jspl-jsw-steel-rise-up-to-4-after-this-indias-snub-to-us-at-wto-11747198281787.html