Steel stock have been hammered down on Wednesday after the government announced a five per cent cut in the import duty of steel. Heavyweight duo of Tata Steel and Steel Authority of India have sunk 3.87 per cent and 3.2 per cent, respectively.

Others like Jindal Steel, Jindal Vijaynagar, Bhushan Steel, Essar Steel and National Steel have crashed 2-5 per cent in a single day on Wednesday.

Steel prices have been on an upswing during the past one year and steel majors had announced an increase in the prices of steel earlier during the week.

Governments decision to cut import duties is aimed at stopping the steel companies from raising the prices further, market sources say. Steel stocks have been riding on increasing prices of steel which has boosted the toplines and prifit margins.

Tata Steel and Steel Authority of India have zoomed a whopping 186 per cent and 297 per cent from the prices of Rs 148.95 and Rs 10.65, respectively, a year ago.

Tata Steel stocks closed at Rs 426.55 on Wednesday, down 3.87 per cent while Steel Authority ended the day at Rs 42.3, shedding 3.2 per cent.

Jindal Steel was the top loser among steel majors as the stock plummeted 5.05 per cent to Rs 493.75.