Shares of Jindal Steel surged nearly 4% in Wednesday’s session, December 31, as steel stocks rallied after the Government of India imposed a safeguard duty on the import of select steel products for three years, aimed at protecting domestic manufacturers from cheaper overseas supplies.
The stock advanced sharply in early trade as investors reacted to the Ministry of Finance’s notification dated December 30, 2025, which introduces a graduated import duty on non-alloy and alloy steel flat products.
What triggered the rally in Jindal Steel shares?
The government has imposed a safeguard duty of 12% in the first year, 11.5% in the second year, and 11% in the third year on imports of steel products such as hot rolled coils, sheets and plates, cold rolled coils and sheets, and metallic coated steel products.
The move follows recommendations from the Directorate General of Trade Remedies (DGTR), which found that India had witnessed a sudden and significant surge in steel imports, posing a serious risk to domestic producers.
Why the announcement matters for Jindal Steel
Jindal Steel, with a strong domestic footprint in flat and value-added steel products, stands to benefit from reduced competition from low-priced imports. The safeguard duty is expected to improve pricing power for domestic manufacturers, support margins, and enhance capacity utilisation over the medium term.
The government had earlier imposed a provisional safeguard duty in April 2025 for 200 days. The extension of protection for a full three-year period provides greater visibility and stability for Indian steelmakers.
Sector-wide impact
The announcement has put steel stocks firmly in focus as markets factor in the potential earnings upside from lower import pressure. The move aligns with the government’s broader objective of ensuring fair trade practices and strengthening India’s domestic steel industry.
With the safeguard duty now officially in place, Jindal Steel shares are attracting buying interest as investors assess the positive implications for the sector over the coming years.
