Tata Steel gains 24.4% in 2016, outperforms other Sensex companies

By: | Published: May 21, 2016 6:05 AM

Tata Steel has gained as much as 24.4% in 2016, outperforming other members of the Sensex. It currently commands market capitalisation of Rs 31,360.5 crore.

Tata Steel has gained as much as 24.4% in 2016, outperforming other members of the Sensex. It currently commands market capitalisation of Rs 31,360.5 crore.

Even as the 30-stock index has lost 3.12% in the year so far, a surge of nearly 32% in steel prices globally since January and a clarity on the largest steel-maker’s UK asset sale deal helped the Tata Steel stock steadily inch up. The stock currently trades at Rs 323 apiece.

Prices of China domestic HR sheet have risen to $404/ tonne compared to $280/tonne in December 2015. Steel prices also touched an 18-month high in April this year, after the dip in prices seen in 2015 caused due to a supply glut and faltering demand.

In March, the government extended a safeguard duty on steel imports until March 2018 to protect domestic manufacturers who have been hurt by cheap Chinese steel imports. China accounts for almost 50% of the global steel production and amidst prices touching multi-year lows, China’s exports have soared nearly 36% since January.

Among other gainers in the 30-stock index, Axis Bank and Infosys have gained 9% each.

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