Tata stocks still at a high despite Mistry muddle | business-news | Hindustan Times
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Tata stocks still at a high despite Mistry muddle

While the sensex was trading 1.4% up or by 368 points at 26,677 points at 1:15 pm, all stocks of Tata group companies were leading their sectors at the exchanges, with Tata Steel, rising the maximum; it was trading up 4.4% at Rs 430.40.

business Updated: Dec 08, 2016 13:54 IST
HT Correspondent
While the sensex was trading 1.4% up or by 368 points at 26,677 points at 1:15 pm, all stocks of Tata group companies were leading their sectors at the exchanges, with Tata Steel, rising the maximum; it was trading up 4.4% at Rs 430.40.
While the sensex was trading 1.4% up or by 368 points at 26,677 points at 1:15 pm, all stocks of Tata group companies were leading their sectors at the exchanges, with Tata Steel, rising the maximum; it was trading up 4.4% at Rs 430.40.

The stock markets are trading up in the first half on the BSE so far, on the back of global cues, despite a rate pause by RBI on Wednesday which was widely expected to be negative for industry.

While the sensex was trading 1.4% up or by 368 points at 26,677 points at 1:15 pm, all stocks of Tata group companies were leading their sectors at the exchanges, with Tata Steel, rising the maximum; it was trading up 4.4% at Rs 430.40.

Tata Steel late Wednesday said that it has reached a settlement with the trade unions to gradually move toward closure of its defined benefit pension scheme, that would reduce risks and also close the British Steel Pension Scheme. This is a positive development as it finally gives Tata Steel room to move ahead with restructuring of the European steel business.

“In our opinion a resolution to BSPS (British Steel Pension Scheme) could pave the way for a possible Tata Steel Europe-ThyssenKrupp merger,” says Ritesh Shah of Investec Securities. “However, continuing Port Talbot operations until 2021 would also mean a drag if they incur losses, which we believe isn’t the case factoring current Europe spreads,” he added.

Other Tata Group flagship, Tata Motors too surged 4.1% at 1:25 pm at Rs 463.90 on strong Jaguar Land Rover sales. Tata Chemicals is up 2% at Rs 502, while Tata Global Beverages is up 1.3% at Rs 124.

RBI governor Urjit Patel on Wednesday maintained key interest rates, instead of reducing them as was expected. He attributed the growth slowdown due to demonetization and for more data on inflation trends for the pause, which saw the markets fall by about 150 points immediately after the announcement.

However on Thursday, a rally in global markets pulled up the sensex as investors in Europe, US and Asian markets bought shares after the European Central Bank extended its asset buying campaign.