Tata Steel shares gain 1.5%, JP Morgan overweight on it

Moneycontrol Bureau

Tata Steel shares gained 1.5 percent in afternoon trade Wednesday, continuing upmove for the third consecutive session. JP Morgan is overweight on the stock with a target price of Rs 500.

"The stock has rallied 25 percent driven by very strong Q1 results (announced on August 13), improving steel prices in Europe, under-ownership and positive Chinese data, which has brought investor interest back into the sector. News flow indicates pricing strength in Europe," JP Morgan report said.

The brokerage house expects stock to continue be bid up in the near term.

Also Read - Tata Steel surprised street, Q1 net doubles to Rs 1139cr

At 12:34 hours IST, the stock rose 1.5 percent to Rs 260.80 on the Bombay Stock Exchange. It rallied nearly 12 percent this week.