Mumbai: Metal stocks surged on Wednesday, March 19, 2025, with several stocks rallying up to 5 per cent in intraday trade on the National Stock Exchange (NSE). The gains were fueled by a government recommendation for a 12 per cent safeguard duty on certain steel products to protect domestic manufacturers from rising imports.
Among individual stocks, SAIL surged 5.04 per cent to hit an intraday high of Rs 114.40, while JSW Steel advanced 2.84 per cent to Rs 1,047. Tata Steel gained 2.14 per cent to Rs 157.97, JSL climbed 1.82 per cent to Rs 659.70, and Jindal Steel rose 1.52 per cent to Rs 937.60. Other notable gainers included Welspun Corp (+1.35 per cent at Rs 820.25), APL Apollo (+1.18 per cent at Rs 1,449.80), Hindustan Zinc (+1.23 per cent at Rs 441.80), Hindustan Copper (+1.06 per cent at Rs 223.93), and NMDC (+1.30 per cent at Rs 67.64). Stocks of NALCO, Vedanta, Hindalco, and Adani Enterprise also edged higher by 0.2-1 per cent.
Nifty Metal Index Jumps 1.67 per cent
The Nifty Metal Index climbed 1.67 per cent to reach an intraday high of 9,185.20, reflecting overall optimism in the sector.
Government Recommends 12 per cent Safeguard Duty
The surge in metal stocks came after the Directorate General of Trade Remedies (DGTR) proposed a 12 per cent safeguard duty on certain steel products for 200 days to counter the surge in imports. A safeguard duty is a temporary tariff imposed to protect local industries from excessive foreign competition.
“There is a necessity for immediate application of provisional safeguard measures,” the DGTR stated, emphasizing the urgency of the situation. The authority further noted that delays in imposing the duty could cause irreversible damage to the domestic industry.
The DGTR, under the commerce department, has sought comments on the findings within 30 days, after which an oral hearing will be held before finalizing the order.
Brokerages View Safeguard Duty as Positive
Global brokerage firm JPMorgan welcomed the safeguard duty move, stating it would positively impact Indian steel manufacturers. The firm projected that domestic Hot Rolled Coil (HRC) prices could increase by Rs 2,000 per tonne, benefiting stocks such as Tata Steel, JSW Steel, and SAIL.
Meanwhile, CLSA highlighted an improved outlook for metals demand amid China's economic stimulus and European growth. CLSA analysts also noted that the safeguard duty would support domestic steel mills, preferring investments in non-ferrous metals. The firm also raised its target prices for JSW Steel and Tata Steel.
The safeguard duty announcement has provided a significant boost to investor sentiment in the metal sector, driving stocks higher. With potential price hikes and improved demand, the outlook for Indian steel companies appears promising in the near term.
