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Indian steel stocks fall sharply after the government announced an export levy

Indian steel stocks fell sharply on Monday after the government announced an export levy on some steel products.

Tata Steel Ltd. 500470,
-12.13%
Shares recently down 11%, JSW Steel Ltd. 500228,
-12.28%
Shares fell 12% and Jindal Steel & Power Ltd. 532286,
-16.90%
Stocks fell 15%.

India’s Treasury Ministry said on Saturday it would levy tariffs on exports of some steel products from Sunday, while cutting taxes on gasoline and import tariffs on raw materials used in steel production in response to rising inflation.

In addition to hurting exports, the export tariff is likely to weigh on domestic prices, Jefferies analysts Nitij Mangal and Sagar Sahu said in a research note. They remain cautious on India’s steel sector as the global outlook weakens and the new export tariff puts further pressure on margins, analysts said.

India’s Benchmark Sensex 1,
+0.70%
was last up 0.6%, led by automakers, which could benefit from lower steel and gas prices.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

https://www.marketwatch.com/story/india-steel-stocks-fall-sharply-after-govt-announces-export-levy-271653284531?rss=1&siteid=rss Indian steel stocks fall sharply after the government announced an export levy

Brian Lowry

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