Shares of Tata Steel gained more than 2% amid rising prices of the alloy
· The steelmaker has rallied over 6.5% in the last five sessions, in excess of 10% in the past month, and nearly 90% in 2021 so far. It has recorded hefty volume of 66 lakh shares traded on NSE today.
· Tata Steel on Thursday told the bourses that CARE Ratings Ltd. has upgraded its rating on the steel mill from ‘AA’ (outlook: negative) to ‘AA+’ (outlook: stable). That, it said, was on account of the company’s strong performance in FY21, both domestic and European operations, besides increase in steel prices, which has led to a substantial cash flow generation.
· According to JPMorgan, Tata Steel’s near-term prospects in Europe remained intact with material upside risk for the business over FY22-FY23. Steel prices, predicted to remain at healthy levels for the next 12 months, alongside rising demand are likely to be key growth drivers for Tata Steel. JPMorgan said the June-quarter results would act as a catalyst for consensus revision of FY21 estimates and pricing regime till 2022 (media report).