Steel companies surge on BSE after excise duty cut

Steel companies surge on BSE after excise duty cut
PTI
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First Published: Wed, Feb 25 2009. 11 42 AM IST
Updated: Wed, Feb 25 2009. 11 42 AM IST
Mumbai: Stocks of steel companies today opened positive on the BSE, a day after finance minister Pranab Mukherjee announced excise duty cut as part of the interim budget ahead of the general elections for the 15th Lok Sabha.
Shares of Jindal Steel jumped up 3.83% to touch an intra-day high of Rs1,019.80. It was later trading at Rs1,011.80, up 3.02% on the BSE.
Yesterday, Mukherjee had announced a two per cent excise duty cut that will result in reduction of steel prices in the range of Rs500 to Rs600 per tonne and help in creation of demand for the commodity.
Most of the steel items, including hot- and cold-rolled coils and TMT bars, used by sectors like automobile and construction attract 10% excise. With 2% reduction in the tax structure, the duty applicable on the commodity would now be 8%.
Meanwhile, Hindustan Zinc which opened up 2.77% to touch an intra-day high of Rs327.75. It was later trading at Rs327, 2.54% on the BSE.
Besides other, stocks which moved in the positive territory were Hindalco Industries up 2.94%, Tata Steel up 2.68% and JSW Steel higher 3.50%.
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First Published: Wed, Feb 25 2009. 11 42 AM IST