Tata Steel and JSW Steel saw significant gains as the Directorate General of Trade Remedies (DGTR) launched an investigation into rising steel imports. Analysts anticipate structural relief measures, with price targets set at ₹190 for Tata Steel and ₹1,085 for JSW Steel.
Shares of Tata Steel and JSW Steel surged on December 23 after the Directorate General of Trade Remedies (DGTR) initiated an investigation on the sharp increase in imports of non-alloy and alloy steel flat products, the report says. This was also in response to the complaint raised by the Indian Steel Association, alleging a sudden and significant increase in imports, adversely impacting the domestic steel industry.
The report shows JSW Steel climbed 3.21 percent to hit Rs 947.95, while Tata Steel gained 2.09 percent, reaching Rs 143.80. Other steel stocks like SAIL and Jindal Steel & Power also witnessed gains of up to 3.2 percent.
Analysts are optimistic about buying these stocks, stocks, with brokerages maintaining a ‘Buy’ rating.
Industry-Wide Impact
The probe targets steel products essential to major sectors like construction, capital goods, and automotive industries. These include hot-rolled coils, sheets and plates, cold-rolled sheets, and metallic-coated steel products. Imposing a safeguard duty is anticipated to curb import bookings, boost channel restocking, and drive an uptick in flat steel prices, which are currently at multi-year lows.
The Indian government has been exploring measures like a twenty percent safeguard duty aiming to protect domestic steelmakers from overcapacity in China and other global pressures.