Tata Steel share price surged as much as 5 per cent intraday on Wednesday on reports that managers at Tata’s Port Talbot steelworks have been briefed about a potential management buyout plan.
At 11.08 am, shares of Tata Steel were trading 4.27 per cent up at Rs 349.30. The scrip opened at Rs 337 and has touched a high and low of Rs 352 and Rs 337, respectively, in trade so far. Sensex was trading 87.04 points down at 25,729.32.
Credit Suisse also initiated coverage on Indian steel sector with “outperform” rating for Tata Steel, JSW Steel and Jindal Steel and Power. According to global research house, inventory cycle bottoming out, dollar weakness and China demand stimulus among positives for sector. The BSE Metal index was trading 2.76 per cent up at 7,931.95.
JSW Steel and Jindal Steel (JSPL) were trading up by 4.43 per cent and 5.27 per cent respectively at the same time.
Credit Suisse said, “We like Tata Steel most given upside from UK drag going away and lowest bankruptcy risk.”
(With inputs from Reuters)