AGL 8.30 Increased By ▲ 0.44 (5.6%)
ANL 10.59 Increased By ▲ 0.24 (2.32%)
AVN 78.60 Increased By ▲ 0.70 (0.9%)
BOP 5.45 Increased By ▲ 0.06 (1.11%)
CNERGY 5.59 Increased By ▲ 0.58 (11.58%)
EFERT 80.25 Decreased By ▼ -0.55 (-0.68%)
EPCL 69.60 Increased By ▲ 1.50 (2.2%)
FCCL 15.30 Increased By ▲ 0.74 (5.08%)
FFL 6.53 Increased By ▲ 0.33 (5.32%)
FLYNG 7.18 Increased By ▲ 0.53 (7.97%)
GGGL 10.85 Increased By ▲ 0.27 (2.55%)
GGL 16.79 Increased By ▲ 0.38 (2.32%)
GTECH 8.14 Increased By ▲ 0.02 (0.25%)
HUMNL 7.04 Increased By ▲ 0.02 (0.28%)
KEL 2.99 Increased By ▲ 0.11 (3.82%)
LOTCHEM 30.77 Increased By ▲ 2.24 (7.85%)
MLCF 28.98 Increased By ▲ 2.03 (7.53%)
OGDC 82.75 Increased By ▲ 0.60 (0.73%)
PAEL 16.97 Increased By ▲ 0.32 (1.92%)
PIBTL 6.08 Increased By ▲ 0.24 (4.11%)
PRL 18.10 Increased By ▲ 1.35 (8.06%)
SILK 1.15 Increased By ▲ 0.05 (4.55%)
TELE 11.25 Increased By ▲ 0.28 (2.55%)
TPL 9.20 Decreased By ▼ -0.02 (-0.22%)
TPLP 19.88 Increased By ▲ 0.22 (1.12%)
TREET 26.46 Increased By ▲ 0.55 (2.12%)
TRG 94.60 Increased By ▲ 0.99 (1.06%)
UNITY 19.50 Increased By ▲ 0.50 (2.63%)
WAVES 14.34 Increased By ▲ 0.78 (5.75%)
WTL 1.30 Increased By ▲ 0.06 (4.84%)
BR100 4,187 Increased By 80.1 (1.95%)
BR30 15,474 Increased By 343.5 (2.27%)
KSE100 42,096 Increased By 670.9 (1.62%)
KSE30 15,883 Increased By 222.7 (1.42%)

BENGALURU: Indian shares closed lower on Monday after a volatile session, weighed down by a sell-off in metal stocks after the government imposed heavy export taxes on steel products, while gains in automobile stocks helped cap some of the losses.

The NSE Nifty 50 index was down 0.32% at 16,214.70 at close, while the S&P BSE Sensex fell 0.07% to 54,288.61.

The Nifty Metal index, which saw its worst day since March 2020 in the session, settled 8.1% lower. JSW Steel and Tata Steel were the top losers on the Nifty 50 index, falling 13.2 and 12.6%, respectively.

India on Saturday announced a series of changes to the tax structure levied on fuel and crucial commodities in a bid to help fight surging inflation.

Indian shares track positive global sentiment after China rate cut

The country imposed an export tax of 15% on eight steel products at a time steelmakers are looking to make up for tepid local demand by increasing market share in Europe, whose supplies have been hit by Russia’s invasion of Ukraine.

“Prospects of additional market borrowings by the government of India in the wake of the tax cuts on fuel to tame inflation came to the forefront,” said S Ranganathan, head of research at LKP securities.

However, Reserve Bank of India governor Shaktikanta Das told CNBC-TV18 in an interview on Monday that the Indian government would likely stick to its fiscal deficit target as specified in the budget and there may not necessarily be a need for increasing government borrowing just yet.

“The hawkish monetary and fiscal measures adopted by the RBI and the government will have a cascading effect on market & economy in the short to medium-term,” said Vinod Nair, head of research at Geojit Financial Services.

The Nifty Auto index rose 1.8%, as automakers stand to benefit from lower input costs following the tax changes. Maruti Suzuki India and Mahindra and Mahindra were the top gainers on the Nifty 50, rising 4% each.

Among individual stock moves, Divi’s Laboratories and TTK Healthcare Ltd fell 9.5% and 10.5%, respectively, after their quarterly results.

Comments

Comments are closed.

SAMIR SARDANA May 24, 2022 03:38am
The GOI has dooned the steel industry when it had expansion plans of 4-5 Billion USD lined up The idea was to stop exports and depress local prices , based on the opportunity cost of the pricing of local sales. This is in synch with the fuel price cut - by slashing AED. The Govtt aim is to stimulate the auto sector - to reduce its input costs and also lower fuel costs for the public - to boost auto sales and thus GST and direct taxex,The Punt is that the DELTA Tax on Autos will offset the Tax loss from steel as the steel units will export less that will have lower PBT ! This is when Russia and UKR are out of the EU and US market Net Gainer is US Steel companies US STEEL,NUCOR AND ARCELOR (EU) WERE UP 5% TODAY ! WHAT WILL THE GOI DO, IF OIL RATES STAY PUT, OR KEEP RISING - OR IS THE GOI PUNTING THAT OIL WILL FALL ? WHEN THERE IS AN OPPORTUNITY IN STEEL -THE GOI HAS DOOMED IT.WHEN THE STEEL USERS HAD AN OPPORTUNITY - THE GOI IMPOSED CVD/SD/ADD,ON STEEL IMPORTS dindooohindoo
thumb_up Recommended (0)