Tata Steel Surges Over 4% on Heavy Volumes

18 Mar 2024 , 01:48 PM

On March 18, Tata Steel’s stock price surged by almost 5% due to high trading volumes and several significant transactions, supported by China’s strong expansion in industrial output. Tata Steel’s shares was up 4.9% from the previous closing at ₹148.6 at 1:15 p.m.

Today’s trading volume of about 10 crore Tata Steel shares is more than twice that of the previous month. A total of 2.3 crore shares have been sold in a series of significant transactions.

Following a 7% increase in China’s industrial output in January–February, other metal stocks also saw increases. That above a 5.2% growth forecast by Bloomberg. There was a 0.3% increase in the Nifty Metal index.

According to preliminary government statistics reviewed by Reuters on March 02, steel imports reached a six-year high in the first ten months of current fiscal year, driven by exports from China. As a result, the industry anticipates restrictions on imports. The data indicated that India was a net importer of finished steel. The country continued to be a global shining star with high demand from its automobile and construction sectors, which in turn drove up steel prices.

In the first ten months of the fiscal year, 1.75 million metric tonnes of finished steel were exported to India by China, the world’s largest steel producer. This is a six-year high and an 80% increase over the same period previous year.

India implemented a five-year anti-dumping tariff in September that targets particular kinds of Chinese steel. In this scenario, a home government slaps tariffs on imports that it deems to be undervalued at fair market value.

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