Finance Minister Nirmala Sitharaman announced a 7.5 percent reduction in customs duty on steel.
Shares of steel-manufacturer traded mixed after Finance Minister Nirmala Sitharaman announced a reduction in customs duty on steel in her Budget speech on February 1.
Shares of Jindal Stainless, JSW Ispat, Mahamaya Steel, Scan Steels and Narayani Steels were trading in the red, falling up to 4 percent. However, shares of Tata Steel, JSW Steel, SAIL and Mishra Dhatu traded in the green.
Customs duty on steel has been reduced to 7.5 percent. Besides, in order to provide relief to MSMEs and recyclers, steel scrap duty has been removed.
Experts said the move will put pressure on domestic steel prices and hit the margins of producers across the board. However, end-user industries such as automobiles and real estate will benefit.
The Union Budget 2021 was overall positive for the market as there was no COVID tax, while personal and corporate tax remained untouched in the Budget, they said.