Metal stocks saw a surge in early trade on April 22 after the Indian government took protective steps to support domestic steelmakers. The government imposed a 12% safeguard duty on imports of certain flat products made from non-alloy and alloy steel. This measure aims to curb the influx of cheaper steel products, particularly from China, and protect local manufacturers from unfair competition.
The Nifty Metal index continued its positive momentum, marking its sixth consecutive session of gains. By 9:30 am, the index had climbed 1.22%, reaching 8,759, with an intraday high of 8,783. All components of the index were in the green, reflecting broad-based buying interest. Hindustan Copper led the charge, gaining 1.64%, followed by Jindal Stainless, which rose by 1.44%. Hindustan Zinc (+1.33%), Tata Steel (+1.21%), and Jindal Steel (+1.00%) also saw strong buying activity, with Vedanta and NALCO posting smaller gains.
The safeguard duty, which came into effect on April 21, will remain in place for 200 days. This decision was announced by the Ministry of Finance to address concerns raised by Indian manufacturers regarding the rising risk of dumping cheap steel into the domestic market. The measure is also seen as a response to global trade distortions and tariff uncertainties linked to policy changes in the United States.