Metal Stocks Like SAIL, JSW Steel, Tata Steel Rally as Govt Imposes 12% Safeguard Duty

On March 19, 2025, metal stocks saw a strong rally, with some rising as much as 5% in intraday trading on the NSE. The surge followed the government’s announcement of a 12% safeguard duty on certain steel products for 200 days.

Among major gainers:

• SAIL share price rose 5.04% to ₹114.40
• JSW Steel share price gained 2.84% to ₹1,047
• Tata Steel share price climbed 2.14% to ₹157.97
• JSL share price increased 1.82% to ₹659.70
• Jindal Steel share price rose 1.52% to ₹937.60
• Welspun Corp, APL Apollo, Hindustan Zinc, Hindustan Copper, NMDC, NALCO, Vedanta, Hindalco, and Adani Enterprises also saw gains between 0.2% and 1.35%.

The Nifty Metal index surged 1.67% to an intraday high of 9,185.20.

Why Are Metal Stocks Rising?

The government imposed a 12% safeguard duty to protect domestic steelmakers from rising imports. This temporary tariff aims to prevent “serious injury” to the local industry caused by cheap steel imports, particularly from China, South Korea, and Japan.

According to the Directorate General of Trade Remedies (DGTR), delaying the safeguard duty could harm Indian manufacturers, making immediate action necessary. The government has invited feedback on the policy, with an oral hearing scheduled before a final decision.

Future Outlook

Despite short-term challenges such as a domestic slowdown and policy uncertainty, analysts expect a mid-cycle recovery in steel prices. Many Indian steelmakers are also expanding production to meet long-term demand, with crude steel output projected to reach 200 million tonnes by 2030.

At 9:46 AM, the Nifty Metal index was up 0.90% at 9,114.70, while Nifty50 was trading 0.11% higher at 22,858.70.

Conclusion

The safeguard duty aims to support Indian steelmakers against rising imports, boosting investor confidence. While short-term challenges persist, analysts remain optimistic about long-term growth in the sector.

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