BackTata Steel shares gain over 6% on hope of robust results
Upbeat quarterly results from rival ArcelorMittal triggered hopes of better-than-expected earnings from Tata Steel
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Mumbai: Shares of Tata Steel Ltd jumped more than 6% on Friday as upbeat quarterly results from rival ArcelorMittal triggered hopes of better-than-expected earnings from India’s top steel maker.
Tata Steel is to report financial results for the fiscal third quarter on Tuesday.
On Friday, ArcelorMittal, the world’s largest steel maker, posted a 23% increase in net profit for the December quarter, and said it expects profit to climb 16% in 2014 as demand for the metal rebounds in the US and Europe.
“ArcelorMittal’s posted improvement in margins in Europe on the back of better realizations and lower input costs," said Jatin Damania, a research analyst with SBICAP Securities Ltd. “We can expect the same trend to continue for Tata Steel as well, and we can expect positive surprises in Tata Steel’s earnings."
Shares of Tata Steel gained 6.39% to ₹ 384.45 apiece on BSE on Friday, while the 30-share Sensex added 0.32% to 20,376.56 points.
Tata Steel was the fifth-most traded stock on the National Stock Exchange, and the second-most traded stock on BSE.
Bloomberg contributed to the story.
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