Shares of three steel makers rose between 0.95% to 5.67% on reports the Indian government has suspended export subsidy under the duty entitlement pass book scheme on some steel products temporarily to control inflation and boost domestic supplies.
Tata Steel (up 5.67% to Rs 691.90), Steel Authority of India (up 0.95% to Rs 199.95) and JSW Steel (up 1.27% to Rs 820.50), advanced
Tata Steel saw volumes of 7.98 lakh shares, Steel Authority of India clocked volumes of 13.14 lakh shares and 46224 shares changed hands on JSW Steel counter on BSE.
Reports added that following the proposal, steel prices may decline to Rs 38,000 per tonne from the present Rs 40,000 per tonne.
Earlier this week, some steel producers in India had agreed to halt steel exports with immediate effect after government sought help from steel manufacturers to keep the prices in check with inflation rising to almost 6%.
Rising demand and spiralling costs have seen steel majors increase prices significantly since January 2008. Steel exports stood at 3.5 million tonne between April and December 2007 of which galvanized plain/galvanized corrugated (GPGC) accounted for 1.56 million tonne and hot rolled coil/sheet accounted for one million tonne.