Shares of steel companies were mostly under stress on Monday, in sync with the broader market and metal index, even after the government removed duties imposed on export of steel and iron ore products. The move is likely to provide much needed respite to the steel sector which is battling with high-cost inflation and challenging macroeconomic environment globally. Industry experts, however, believe that the cut in export duty is unlikely to provide any significant near term benefit to domestic steel players as steel prices in the global market are currently muted, hence export volumes are likely to pick up notably only when international prices recover.

The BSE metal index dropped 0.96 percent in intraday trade on Monday, in line with the benchmark index Sensex, which tumbled as much as 550 points, or 0.9

percent, by 1:00 pm. The top losers in the metal space were JSW Steel, Hindalco Industries, Jindal Steel & Power(JSPL), and Tata Steel. Bucking the trend, Steel Authority of India (SAIL) and NMDC shares were trading higher, gaining up to 4 percent.

JSW Steel was the top laggard in the metal sector by falling as much as two percent on the BSE, followed by Aditya Birla-owned metal company Hindalco, which dropped 1.9 percent in intraday trade so far. Besides, Shares of Tata Steel, the country's largest steel manufacturer, and OP Jindal Group's JSPL, were also trading lower with marginal losses.

In a bid to boost the domestic steel industry and exports, the central government last week scrapped the 15 percent export duty on steel products, which was levied during May 2022. Steel products now attract nil export duty compared to 15 percent earlier.

The government also scrapped the export duty on iron ore lumps and fines below 58 percent Fe content and iron ore pellets. Export of iron ore lumps and fines above 58 percent Fe content will now attract a lower duty of 30 percent, from 50 percent imposed earlier. The import duty concessions on anthracite/PCI coal, coking coal, coke & semi coke and ferronickel have also been withdrawn. All these changes in duty came into effect from November 19th, 2022.