Shares of metal companies were trading higher in early trade on Wednesday after the government on Tuesday extended the minimum import price (MIP) on 66 steel products for a period of two months. Cheering the news, Tata Steel, Bhushan Steel, Visa Steel and Jindal Steel advanced as much as 1.64 per cent, 3.81 per cent, 9.20 per cent and 2.59 per cent, respectively. The MIP ranges between $341-752 per tonne.
The 66 products include semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods. To protect domestic steel producers against cheap in-bound shipments, the government in February had imposed MIP, ranging between $341 to $752 per tonne, on 173 steel products for a period of six months.
Later, government in August decided to extend the minimum import price (MIP) on 66 steel products for a period of two months as against 173 items earlier.
At 9.56 am, shares of Tata Steel were trading 0.90 per cent up at Rs 393.60. The scrip opened the day at Rs 395 and has touched a high and low of Rs 396.50 and Rs 392.80, respectively, in trade so far. Bhushan Steel was trading 1.39 per cent up at Rs 43.85 at the same time.
Bhushan Steel has also received its shareholders approval for proposal of raising upto Rs 1,155 crore through issue of redeemable cumulative preference shares.
Visa Steel and Jindal Steel were trading 5.98 per cent and 1.93 per cent up at Rs 16.30 and Rs 84.65, respectively, in early trade.
Jindal Steel on Tuesday announced that the company has executed an agreement with a wholly owned subsidiary of India Infrastructure II for sale of 24 MW wind power generation business undertaking situated at Satara, Maharashtra.
Shares of Steel Authority of India were trading 0.51 per cent up at Rs 49.05 (at 10.00 am). Benchmark BSE Metal index was trading 0.88 per cent up at 10,169.92 at the same time.