According to Pib, India’s iron ore sector is a vital component of its mining industry, producing approximately 277 million metric tonnes (MMT) in FY 2023-24, marking a 7.4% increase from the previous year. The sector is projected to grow at a CAGR of over 3% from 2024 to 2030, driven by rising steel demand.
Today, Steel stocks have seen a drastic fall, as Karnataka Chief Minister Siddaramaiah’s government tabled a bill to tax mines and mining land in which the government might hike duty on iron ore.
Earlier this month, the Karnataka Cabinet approved the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, to make provisions for levy and collection of tax on exercise of mineral rights and on mineral-bearing land by the State government.
The Supreme Court previously allowed states to collect retrospective mining taxes from 2005. The proposed law aims to generate ₹4,207.95 crore in revenue, with an additional ₹505.9 crore annually from land-bearing minerals, levying taxes ranging from ₹20 to ₹100 per tonne for various minerals.
Here are steel stocks that fell up to 7 percent in today’s trading session:-
Steel Authority of India Ltd
With a market capitalization of Rs 49,767.61 crore, the shares were trading at Rs 120.50 per share, decreased around 3 percent in today’s trading session as compared to the previous closing price of Rs 121.05 apiece.
Tata Steel Ltd
With a market capitalization of Rs 1.79 lakh crore, the shares were trading at Rs 143.80 per share, decreased around 2 percent in today’s trading session as compared to the previous closing price of Rs 145.65 apiece.
JSW Steel Limited
With a market capitalization of Rs 2.31 lakh crore, the shares were trading at Rs 948.10 per share, decreased around 2 percent in today’s trading session as compared to the previous closing price of Rs 966.55 apiece.
NMDC Ltd
With a market capitalization of Rs 62,216.76 crore, the shares were trading at Rs 212.30 per share, decreased around 7 percent in today’s trading session as compared to the previous closing price of Rs 227.50 apiece.
Karnataka is crucial for NMDC, contributing approximately 35% to its production mix. The state hosts significant operations, including the Donimalai and Kumaraswamy mines, with a combined annual production capacity of around 14 million tonnes, playing a key role in NMDC’s overall iron ore output.
Jindal Stainless Ltd
With a market capitalization of Rs 60,757.13 crore, the shares were trading at Rs 737.55 per share, decreased around 2 percent in today’s trading session as compared to the previous closing price of Rs 742.30 apiece.
Written by:- Abhishek Singh
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