Barclays makes Tata Steel its top sector pick in Asia

Upgrades it to 'overweight' from 'equalweight'

Barclays upgraded Tata Steel Ltd to "overweight" from "equalweight" and raised its target price to Rs 358 from Rs 264, citing improving business outlook.

Barclays said it turned positive on Tata Steel based on early signs of a demand rebound in Europe, flexibility in the steel maker's domestic capital spending plans, the sale of non-core assets and improving domestic volume growth.

The investment bank added that Tata Steel is its top pick among steel producers in the Asia ex-Japan region after the upgrade.

Tata Steel shares are up 0.7% at Rs 302.50 at 1014 am.