In the early days of the stock market, three steel stocks hit the Lower Circuit today. The three stocks are Tata Steel, Steel Authority of India (SAIL) and JSW.
Tata Steel started the day at Rs 73 per share and today at Rs 1053.20 per lower circuit. Shares of SAIL also fell to Rs 74.70 in the Sensex. Similarly, JSW Steel stock price opened under heavy selling pressure and hit a low of Rs 567.80 per share.
In a bid to curb inflation, the finance ministry has announced reduction in excise duty on most steel products and excise duty on petrol and diesel. This is likely to divert more supply towards the domestic market. Now that prices are driven by the export equilibrium philosophy, it is expected that this will lead to a revision in steel prices in India.