Mumbai (Maharashtra) [India], May 23 (ANI): Metal stocks plunged on Monday with Tata Steel crashing by around 13 per cent after the government on the weekend imposed hefty duties on exports of steel-making raw materials like iron ore and pellets.
Tata Steel crashed to the lowest level in over a year. The scrip tumbled 12.24 per cent to Rs 1027. It crashed to a low of Rs 1003.15 in the intra-day.
Steel Authority of India Limited (SAIL) crashed 10.30 per cent to Rs 74.45. The scrip hit a low of Rs 72.20 in the intra-day. This is the lowest level in 52 weeks.
Jindal SteelPower slumped 17.52 per cent to Rs 395. The scrip crashed to a low of Rs 391.30. JSW Steel dipped 13.21 per cent to Rs 547.50.
The share price of NDMC, Vedanta and Hindalco Industries also tumbled.
Metal stocks crashed after the government announced the imposition of hefty taxes on raw materials used for steel manufacturing.
On Saturday, the government announced upto 50 per cent increase in export duty on iron ore. Duties have been significantly increased on pellets and some other steel intermediaries.
The government has increased the duties on exports of these materials to boost domestic availability and curb price rise.
However, the Indian Steel Association (ISA) argues that the imposition of export duty on steel would send a negative signal to investors and adversely impact the sector's capacity utilisation.
Brokerage houses have downgraded major steel firms after the government's action on duty hikes. (ANI)