The move aims to protect domestic producers from a surge in low-cost imports that have been weighing on margins and market share.
The Nifty Metal index rose 1.01% to 8,740.70, with gains across the board.
Lloyds Metals & Energy (up 2.87%), Hindustan Copper (up 1.97%), Jindal Stainless (up 1.94%), JSW Steel (up 1.42%), Vedanta (up 1.03%), SAIL (up 0.92%), Adani Enterprises (up 0.88%), APL Apollo Tubes (up 0.76%), Jindal Steel & Power (up 0.70%), Tata Steel (up 0.48%), NMDC (up 0.34%), Welspun Corp (up 0.31%), Hindustan Zinc (up 0.28%), National Aluminium Company (NALCO) (up 0.25%) and Hindalco Industries (up 0.14%) surged.
According to a notification issued by the Department of Revenue, the safeguard duty will apply to certain non-alloy and alloy steel flat products for a period of 200 days, starting April 21, and will be payable in Indian currency.
The duty is expected to restore market balance, provide temporary relief to domestic producers, particularly small and medium enterprises, and rebuild industry confidence amid rising global competition.