Shares of JSW Steel fell 1.3% and Tata Steel erased early gains to trade 0.2% lower after a Reuters report revealed India’s antitrust regulator found major steelmakers colluded on prices. The development has raised investor concerns over regulatory penalties and corporate governance in the sector.
India’s steel industry faced turbulence in the equity markets today after Reuters reported that the country’s antitrust watchdog found Tata Steel, JSW Steel, SAIL, and 25 other firms guilty of colluding on steel prices. The report also held 56 senior executives personally liable, including top leaders of Tata Steel and JSW Steel.
Key highlights from the announcement include
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JSW Steel shares dropped 1.3% following the report.
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Tata Steel erased earlier gains, last trading down 0.2%.
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The antitrust probe identified collusion among 28 steel firms, including state-run SAIL.
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A total of 56 executives, including CEOs and managing directors, were held liable for price coordination.
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The findings mark one of the largest antitrust crackdowns in India’s industrial sector.
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Investor sentiment weakened as concerns grew over potential penalties and reputational risks.
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Analysts suggest the ruling could reshape governance standards and compliance practices across the steel industry.
The regulatory order underscores the seriousness of India’s competition watchdog in tackling cartel practices. With leading steelmakers implicated, the case is expected to have far-reaching consequences for pricing, investor confidence, and the future of India’s steel sector.
Sources: Reuters, Economic Times, Business Standard