SAIL.NS Stock Today, December 31: 3-Year Tariff Sparks Rally
SAIL share price jumped in today’s trade after India announced a three-year safeguard duty of up to 12% on flat steel imports, as reported by The Hindu. SAIL.NS hit an intraday high of ₹141.80, up about 5.2%, and was last near ₹141.02. Volume at 4.12 crore shares was roughly 2.1x its 20-day average. The levy reduces import parity pressure from China and others, supporting near‑term pricing and margins for domestic mills. Peers also firmed up as the street reassessed spreads and inventory values.
Why metal stocks rallied today
India imposed a three-year safeguard duty of up to 12% on select flat steel imports to counter a sharp rise in shipments and protect domestic producers. The move targets key categories where import pressure has been intense. It narrows the landed cost gap from China and other suppliers, which can aid utilisation and stabilise pricing for large integrated players with flat product exposure.
Early trade saw broad gains across large caps and midcaps in metals. As noted by Upstox, metal stocks rose up to 5% after the tariff headline. The move signals expectations of firmer domestic realisations and better inventory economics into Q4 FY25, assuming steady demand from autos, appliances, and construction.
The tariff trims import parity discounts on hot-rolled and cold-rolled coils, supporting list prices and negotiated contracts. For SAIL share price, this can sustain a bid near resistance zones as traders price stronger spreads. Benefits may be front-loaded, while mills still track raw material costs, export orders, and currency. Scope is limited to covered flat products, so long products move with domestic demand.
Today’s tape: price, volume, and trend
Price traded between ₹133.54 and ₹141.80 today, with last near ₹141.02. The 50-DMA at ₹134.47 and 200-DMA at ₹127.73 act as supports, while the 52-week high sits at ₹145.90. SAIL share price holding above the 50-DMA keeps bulls active; a clean breakout above ₹145.90 opens room for incremental momentum in the near term.
RSI at 50.58 is neutral, while ADX at 18.47 shows a weak trend. Price stretched above the Bollinger upper band at ₹135.54, flagging a short-term overextension. Stochastic at 80.52 leans overbought. These mixed signals suggest dips to moving averages may be healthier entries than chases, unless strong follow-through buying confirms a trend build-out.
Turnover hit 4.12 crore shares versus a 1.99 crore average, indicating conviction behind the move. Money Flow Index at 48.16 is neutral, leaving room for further accumulation if breadth improves. On-balance volume remains elevated. For SAIL share price, sustaining higher volumes on up days and lighter volumes on pullbacks would validate the breakout setup into early January.
Valuation and fundamentals
SAIL’s market cap stands at ₹582,486,676,255 (about ₹58,249 crore). EPS is ₹6.19, implying a P/E of 22.78. Price-to-book is ~0.94 with book value per share at ₹141.09, placing price near book. Dividend yield is ~1.21%. SAIL share price reflects a tariff-led sentiment bump, while valuation remains anchored by cycle expectations and operating leverage into FY25–FY26.
Debt-to-equity is ~0.58 and interest coverage is ~2.05, showing manageable but watchful leverage. Current ratio at ~0.85 signals tight liquidity. Net margin is ~2.40% and EV/EBITDA ~7.81. Cost control, coking coal trends, and mix can move margins. Any fall in imports alongside steady demand would aid utilisation and pricing resilience.
Key variables: domestic HRC-CRC prices, import arrivals from China, coal costs, rupee, and auto-construction demand. Management commentary on spreads, inventory, and exports will be key next quarter. The next results are expected around February 2026. For SAIL share price, holding above the 50-DMA while spreads stay firm would support a constructive stance.
Peers and portfolio context
Peer moves were positive, with large integrated players benefiting most from flat product exposure. tata steel share and jsw steel share often act as barometers for sector health. SAIL share price tends to respond more to domestic policy and demand, given product mix and state-run profile. Investors should compare order books, balance sheets, and capex timelines across the trio.
Tariff scope is limited to certain flat products, not a blanket shield. A sharp drop in global steel prices, higher coal costs, or a stronger rupee could narrow spreads. Adverse trade actions abroad may cap exports. If volumes fade and price slips below the 50-DMA, SAIL share price momentum could stall.
Consider staggered entries near support zones like ₹134–₹135 and ₹128 if tested, with profit-taking closer to ₹145–₹146 if momentum hesitates. Keep position sizes in check given sector cyclicality. For diversified portfolios, pair exposure across leaders to balance product mix risks while tracking inventory data, tender wins, and quarterly guidance.
Final Thoughts
India’s three-year safeguard duty on flat steel imports tightened import parity and lifted sector sentiment. SAIL share price spiked to ₹141.80 on high volume, with supports at the 50-DMA ₹134.47 and 200-DMA ₹127.73, and resistance near the 52-week high ₹145.90. Valuation sits around 22.8x EPS and ~0.94x book, implying the cycle still drives upside. Actionable plan: avoid chasing spikes, buy near supports if spreads stay firm, and reassess on a clean break above ₹145.90. Track domestic HRC prices, Chinese import flows, coal costs, and management commentary in the next results cycle. Two checks matter daily now: price versus moving averages, and volume confirmation on rallies.
FAQs
India imposed a three-year safeguard duty of up to 12% on select flat steel imports, which supports domestic prices and margins. That policy shift sparked buying in metal stocks. SAIL share price hit a high of ₹141.80 with strong volume as traders priced better near-term spreads and improved utilisation potential.
No. Reports indicate it is a three-year safeguard duty on certain flat steel products. Authorities can review the scope and rate based on market conditions. Investors should watch official notifications, import trends from China, and domestic price movements to gauge whether the measure remains, tightens, or normalises over time.
Immediate supports sit near the 50-DMA at ₹134.47 and the 200-DMA at ₹127.73. Resistance is the 52-week high at ₹145.90. Sustained trade above the 50-DMA with rising volume would be constructive. A decisive breakout above ₹145.90 could extend momentum, while a close back below ₹134.47 weakens the short-term setup.
Both peers gained after the news, as flat product exposure stands to benefit from better domestic pricing. The impact varies by mix, contracts, and export presence. Investors should compare leverage, margins, and capex plans across companies, and track management commentary on spreads and demand into Q4 FY25.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
