Tata Steel shares began 2026 on a strong note, climbing 1.2% intraday on January 1 to ₹182.20, marking a fourth consecutive session of gains. The four-day cumulative rally now stands at 8%, pushing the stock to a one-month high.
Key Drivers:
- The Indian government extended a three-year safeguard duty on steel imports, starting at 12% in the first year, 11.5% in the second, and 11% in the third. The duty targets flat steel products like hot-rolled coils, cold-rolled coils, metallic-coated steel, and color-coated steel, primarily to curb cheap imports from China.
- Robust domestic steel consumption, expected to grow at 7.2% CAGR through FY25–FY31E, is supported by infrastructure expansion and a recovery in construction activity.
- Tata Steel’s share price concluded 2025 with a 30.5% gain, outperforming the Nifty 50’s 10.5% rally. The stock benefited from expansion plans, steel price recovery, strong domestic demand, downstream portfolio growth, and raw material integration.
Corporate Developments:
- 4.8 MTPA expansion at Neelachal Ispat Nigam (NINL)
- MoU with Lloyd Metals for iron ore mining infrastructure
- 6 MTPA greenfield capacity planned in Maharashtra
- Acquisition of 50% stake in Thriveni Pellets for ₹636 crore
The positive sentiment in Tata Steel reflects government policy support combined with strategic growth initiatives, making the stock one of the top performers in the metals sector.
