Tata Steel: Recovery in India business is keeping sentiment elevated

Reviving domestic prices along with improving product mix to aid growth

Tata Steel’s weak performance in the June quarter (Q1), announced on Thursday, failed to deter the Street’s confidence, as the outlook has improved after the lockdown was lifted. The stock was up 1.3 per cent on Friday, when Sensex was down 1.1 per cent.

Though the lockdown impacted domestic steel volumes and realisations, and Tata Steel’s Europe business saw much deeper impact leading to an operating loss, the Street remains confident of a rebound in India operations, supporting overall growth. Improving capacity utilisations, rising domestic and international steel prices are key reasons for the buoyant sentiment.

Tata Steel India’s sales volume at