Bargain hunters charge up Tata Steel

DALAL STREET SPIKES

Tata Steel bounced back on smart volume after a few days of heavy selling pressure. Market analysts said the counter witnessed aggressive buying from institutional investors and mutual funds which bought at lower levels on Wednesday.

The stock gained 2.73 per cent to close at Rs 315.70 backed by a volume of 70.54 lakh shares on the BSE. The stock had been under selling pressure over the last few days on concerns of a slowdown in the Chinese economy.

Analysts said there was bargain hunting by various funds as the stock touched Rs 300 levels in intra-day deals today. In the last few weeks, from a high of Rs 412.80 on April 21, 2004, the stock tumbled nearly 25 per cent to today's close of Rs 315.

The stock was tanked on concerns that the slowdown in the Chinese economy will adversely impact the profitability of most commodities companies across the world.