Steel Stocks Surge as Govt Tariffs Lift Nifty Metal Index in Pre-Open Trade

 Market Reaction to Steel Tariffs

Indian equity markets opened with a positive bias for steel companies after the government announced safeguard duties of 11–12% on select alloy and non-alloy steel flat products. The measure, valid until April 2028, aims to shield domestic producers from rising imports and ensure fair competition.

Shares of leading steelmakers, including Tata Steel, JSW Steel, and SAIL, climbed between 2–4%, driving the Nifty Metal Index up 1.33% in pre-open trade. Market experts note that the tariff could improve profitability for domestic firms, particularly in flat steel segments, while potentially raising costs for auto, infrastructure, and consumer goods sectors reliant on steel inputs.

Key Highlights / Major Takeaways

Stock Performance: Steel shares up 2–4% in pre-open trade.

Index Movement: Nifty Metal Index rose 1.33%.

Policy Trigger: Govt imposed 11–12% safeguard duty on select steel products.

Industry Impact: Positive for steelmakers; downstream sectors may face cost pressures.

Timeline: Tariffs effective until April 20, 2028.

Sources: Reuters, Business Standard, Mint, Ministry of Finance Notifications