Tata Steel Shares: Tata Steel‘s share price came into focus after Citi maintained a buy call on the stock. The stock has tanked over 32 per cent in the last 3 months amid inflation, interest rate hikes, and export duty concerns. However, brokerages seem to be divided on the future trajectory of the stock, which has delivered robust returns to investors in the last two years.
This comes at a time when the steel sector is reeling under immense pressure due to rising inflationary worries and muted demand after Covid-19 resurfaced in China, the largest consumer of metals and steel. Adding to the woes of the domestic metal products, the government of India has imposed a 15 per cent export duty on steel to cool down the prices. Media reports suggest the government is not willing to take back or reduce the export duty as demanded by the steel companies. The duty is 50 per cent on all grades of iron ore, 45 per cent on pellets, and 15 per cent on non-alloy steel except part of semi-finished steel.
According to the Indian Steel Association (ISA), the duty on steel would send a negative signal to investors and impact capacity utilisation. India could lose export opportunities and the decision could impact overall economic activity, it said.
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