Stock Market Today: Tata Steel share price has been seeing regular gains in the last three trading sessions and is up more than 4% during the period. While the onset of monsoon may impact construction activities and, in turn, steel demand, impacting near-term sentiments on steel stocks, the expectations on China production cuts are among some major factors leading to the gains in share prices.
- The safeguard duty announced by the government has provided a much-needed guardrail sought by the industry to ensure that the prices will be sustained and profitability can be ensured to face the competition from imported steel. said Ajit Banerjee, President and Chief Investment Officer, Shriram Life Insurance. Ram Kalyan Medury Founder & CEO, MaxiomWealth.com, also says that Safeguad duties remain supportive for metal stocks
4. Vaibhav Vidwani, Research Analyst at Bonanza said that the US has raised tariffs on Chinese steel and aluminum products to 25% under Section 301 investigations. India imposed a 12% safeguard duty on non-alloy and alloy steel flat products imported from China, following an investigation that found a sharp surge in imports threatening the domestic industry, The duty is effective for 200 days and excludes certain specialized steel products. Such initiative as per Vidhwani, brought expectation that China can reduce its production, which will support metal price and declining price of coal, which act as raw material will support margins.
In such market conditions where metal stocks have shown recovery, Tata Steel, JSW Steel and Vedanta seem to be favorable investment opportunity, as per Vidhwani.
