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Shares of Tata Steel rose 1 percent to touch a three-month high of Rs 111.60 on the BSE in a weak market on Friday. The stock was trading at its highest level since August 19, 2022. In comparison, the S&P BSE Sensex was down 0.82 percent at 62,764 at 11:48 am.
Shares of the Tata group’s iron and steel company traded higher for a fourth consecutive day, gaining 6 percent during the period. In the past month, it has increased 10 percent against a 3 percent increase in the benchmark index.
However, in the past six months, Tata Steel has underperformed the market as well as its peers with a weak 3 percent earnings compared to a 12 percent rally in the Sensex. Whereas, JSW Steel (up 29 per cent) and Jindal Steel & Power (49 per cent) saw their market prices increase by more than 25 per cent during this period.
Last month, in a bid to supply the domestic steel industry and boost exports, the government removed the 15 percent export tax on steel products (which was previously levied in May 2022).
Currently, steel products do not attract export tax compared to the previous 15%. The removal of export duties is an important and positive relief in the long term. domestic steel sector, according to analysts of ICICI Securities.
In addition, the government also canceled the export tax on iron ore lumps and fines for Fe content below 58 percent and pellets. Iron ore. Exports of iron ore lumps and fines exceeding 58% Fe content will now attract a lower duty. 30% (down from 50% before). Import duty concessions for Anthracite / PCI coal, coking coal, coke & semi coke and ferronickel have also been withdrawn. All of these changes are effective from November 19, 2022.
“Removal of export duties bodes well for domestic steel players, although during For a long time, the world’s demand for steel has decreased since May 2022, which has caused the price of steel to decrease. The amount of export money tends to increase especially when the world price recovers. Brokers said in improving the sector. It upgraded Tata Steel from HOLD to BUY.
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