Tata Steel gains after Moody's upgrade

Tata Steel rose 1.53% to Rs 400.75 at 11:29 IST on BSE after Moody's yesterday, 8 January 2015, upgraded its rating on the company from Ba2 to Ba1 with a stable outlook.

Meanwhile, the BSE Sensex was up 99.14 points, or 0.36%, to 27,373.85.

On BSE, so far 2.68 lakh shares were traded in the counter, compared with an average volume of 7.09 lakh shares in the past one quarter.

The stock hit a high of Rs 404.90 and a low of Rs 400.40 so far during the day. The stock hit a 52-week high of Rs 578.60 on 9 June 2014. The stock hit a 52-week low of Rs 332.20 on 14 March 2014.

The stock had underperformed the market over the past one month till 8 January 2015, falling 12.60% compared with 3% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 13.53% as against Sensex's 3.92% rise.

The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.

The upgrade of Tata Steel's rating reflects the group-wide refinancing and the improved liquidity which will support further growth of its highly profitable Indian operations, Moody's said in the report.

Meanwhile, with respect to news article titled, "Tata Steel: Mining of Iron Ore from Noamundi in a few days," Tata Steel clarified during trading hours today, 9 January 2015, that based on the order from the High Court of Jharkhand, Tata Steel has received the order under section 8 (3) of the MMDR Act 1957 from the Government of Jharkhand and has resumed mining operations in Noamundi. The mine renewal process is currently on-going, the company said.

On a consolidated basis, Tata Steel's net profit rose 36.82% to Rs 1254.33 crore on 2.4% fall in net sales to Rs 35503.25 crore in Q2 September 2014 over Q2 September 2013.

Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of nearly 30 million tonnes per annum.

Powered by Capital Market - Live News