Short covering seen in Tata Steel , says Mehraboon Irani, Principal and Head- Private Client Group Business, Nirmal Bang.
Irani told CNBC-TV18, "Tata Steel, somewhere along the line participating at a conference call I learned that the worst possibly could be over for the company. But the sharp spot in the share price today has virtually surprised everybody. All voices morning felt that the numbers were disappointing and the share would react negatively. There are assumptions and I am using assumptions that the performance of Corus or the margins at Corus will improve in the second half of the current calendar year."
He further added, "As far as January and February domestic market goes there have been price rises and the margins of the domestic business should improve. So possibly if one takes a bet that okay, fine ultimately the economy will pick up, industrial activity will pick up, and investment cycle will pick up; the worst for Tata Steel could be over. As far as the share price moment goes I would possibly relate it to some short covering happening at the counter."
