Metal stocks were performing on a higher note during Tuesday as investors gave thumbs up to the Budget 2021 announcements under which the government has reduced recyclers on various products of this sector. At around 3.02 pm, Nifty Metal index is trading at 3,277.50 up 1.56%. The index has touched an intraday high of 1.56.
On the index, Ratnamani led the gainers' list surging 6.4%. However, major stocks like
Hindalco and NALCO contributed most to the gains soaring by 5.4% and 2.3% respectively.
Stock like JSW Steel,
NMDC and MOIL also zoomed by nearly 2% each. While Coal India, Hindustan Zinc added around 1% upside each. APL Apollo was marginally up.
However, on the downside,
SAIL took lead tumbling by 5% followed by Hindustan Copper down 1.3%. JSPL plunged nearly 1%, while Welspun Corp dipped marginally.
Finance Minister Nirmala Sitharaman said, "MSMEs and other user industries have been severely hit by a recent sharp rise in iron and steel prices. Therefore, we are reducing Customs duty uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy, and stainless steels. To provide relief to metal re-cyclers, mostly MSMEs, I am exempting duty on steel scrap for a period up to 31st March, 2022. Further, I am also revoking ADD and CVD on certain steel products. Also, to provide relief to copper recyclers, I am reducing duty on copper scrap from 5% to 2.5%."
She added, "We are proposing certain changes to benefit MSMEs. We are increasing duty from 10% to 15% on steel screws and plastic builder wares."
Custom duty on iron and steel melting scrap, including stainless steel scrap, was reduced to NIL from 2.5%.