Mumbai: The shares of steel companies in India Wednesday saw a rise following China’s announcement that it would restructure its steel industry and reduce total steel output.
This move is expected to decrease the dumping of cheap steel into the Indian market, providing a major boost to domestic steel companies.
Shares of Steel Authority of India (SAIL) surged 4.43 per cent or Rs 4.77 to close at Rs 112.43 on the National Stock Exchange (NSE) during the intra-day trading session.
Tata Steel, one of the biggest players in the industry, saw its stock surge 4.55 per cent or Rs 6.34 to end at Rs 145.68. This price represents a strong recovery from its 52-week low of Rs 122.62, which it hit in January this year.
Jindal Stainless Steel also saw a strong rise, with shares jumped 3.45 per cent or Rs 20.5 to finish the intra-day session at Rs 615.45. This increase follows a recovery from its 52-week low of Rs 568.05, which it hit in February 2025.
Welspun Corporation surged over 7 per cent to close at Rs 758 per share March 5. This is a significant increase from its 52-week low of Rs 440, which it hit last June.
Shares of APL Apollo Tubes rose by over 3 per cent, while JSW Steel shares gained more than 2 per cent.
The rise in steel stock prices contributed to an over 4 per cent increase in the Nifty Metal Index, which reached 8,685.20. The surge in Tata Steel’s stock was the main driver behind the rally in the index.
The increase in steel stock prices comes at a time when Indian steel companies have been pushing for a policy to protect them from the impact of cheap steel imports, particularly from China.
Earlier in February, TV Narendran, the CEO of Tata Steel, mentioned that the Indian government is addressing concerns from steel manufacturers regarding cheaper imports, and some positive developments are expected soon.
This surge in steel stocks comes amid a broader market recovery. Both the Sensex and Nifty saw an uptick, bouncing back from weeks of continuous selloffs, signalling a positive turn in market sentiment.
IANS
