Shares of steel producers such as Tata Steel and JSW Steel were trading higher in the morning trade after the government extended the minimum import price (MIP) on 66 steel products for a period of two months as against 173 items earlier. In order to protect domestic steel companies from cheap in-bound shipments, the government imposed MIP in February, ranging between $341 per tonne to $752 per tonne, on 173 steel products for a period of six months.
At 9.58 am, shares of Tata Steel were trading 1.86 per cent up at Rs 381 and has touched a high and low of Rs 381.90 and Rs 377.50, respectively, in trade so far. For the quarter ended March 31, 2016, Tata Steel reported net loss of Rs 3213.76 crore against Rs 5674.29 crore in the corresponding quarter a year ago.
JSW Steel shares were trading 1.46 per cent up at Rs 1731.15. The scrip opened the day at Rs 1716.20 and has touched a high and low of Rs 1734.50 and Rs 1716.20, respectively, in trade so far. Benchmark BSE Sensex was trading 254.09 points up at 27968.46 (at 10.02 am). During April-June 2016, JSW Steel reported consolidated net profit of Rs 1,109 crore for the quarter ended June 30, 2016 against Rs 21.19 crore in the same quarter last year.
According to PTI, the approval on the 66 products include semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods. Jindal Steel and Power (JSPL) and Steel Authority of India shares were also trading higher by 2 per cent and 2.78 per cent at Rs 83.30 and Rs 48.10 in the morning trade.