Tata Steel continues its winning spree with gains over a percent today
The scrip has been on a gaining spree after reports emerged that the company may announce a restructuring of the domestic business to unlock value.
December 26, 2019 / 10:50 AM IST
Shares of Tata Steel climbed over a percent on BSE in early trade on December 26 and looked on course to extend their winning run into the seventh session in a row.
The scrip has been on a gaining spree after reports emerged that the company may announce restructuring of the domestic business to unlock value.
CNBC-TV18 reported on December 18, citing sources, that Tata Steel may form 4 verticals which are long products, mining, Tata Steel and Tata Steel Utilities & Services.
The Tata Group company may look at restructuring listed companies Tata Metaliks and Tata Sponge which both may be named Tata Steel Long Products, sources said, adding the company may look at restructuring Tinplate in future.
On December 17, Citi had upgraded Tata Steel to 'buy' from 'sell', as the global financial firm expects global steel prices to rise.
"We are expecting global steel prices to rise on the greater likelihood of China easing and potential demand upside in the rest of the world and India. Further volatility in margins should ease as China's supply additions would end in 2020, and we don't expect a sharp deceleration in China demand at least until the mid-decade," Citi said.
As of December 24 close, shares of Tata Steel have dropped over 11 percent on BSE in Calendar 2019.
The scrip was 1.46 percent up at Rs 469.65 on BSE around 10:10 hours IST.