SAIL, NMDC Steel shares rally up to 7% on DGTR's recommendation of 12% safeguard duty

The shares of Steel Authority of India (SAIL) and NMDC Steel surged up to 8.3% in Wednesday's intraday trade on the BSE after the Directorate General of Trade Remedies (DGTR) recommended a 12% safeguard duty on the import of certain steel products.

NMDC Steel shares jumped 8.3% to an intraday high of Rs 36.40, while SAIL shares climbed 5% to a day's high of Rs 114.40.

The rally followed a temporary recommendation (valid for 200 days) to impose a 12% duty on specific steel products to curb imports and support domestic producers.

The DGTR, under India's Ministry of Commerce and Industry, investigates and administers trade remedies such as anti-dumping duties, countervailing duties, and safeguard measures to protect domestic industries from unfair trade practices.

"The Authority considers that a provisional safeguard duty of 12% will be appropriate to eliminate the serious injury and threat thereof to the domestic industry," the DGTR stated in its notice.

The DGTR has invited comments on its findings, with a 30-day submission window, followed by an oral hearing before a final decision is made.

As of 10:45 AM, SAIL shares were trading 3.6% higher at Rs 112.80, while NMDC Steel was up 7.65% at Rs 36.17 on the BSE.