NEW DELHI: Tata Steel shares climbed nearly 2 per cent in morning trade on Wednesday after the rating agency Standard Poor's (SP) upgrades its outlook from stable to positive on the stock."Continued stable outlook for Indian steel prices is likely to keep Tata Steel Ltd's earnings robust over the next 12 months," SP said in a note.
SP has revised Tata Steel's outlook from stable to positive, based on the stability of international steel prices and lower likelihood of the company acquiring Bhushan Power and Steel which will keep its credit profile strong.
The agency expects Ebitda to stabilise in between Rs 25,000 crore and Rs 27,000 crore, owing to benefits that the company is likely to get from stable international prices flowing through domestic prices.
With demand looking robust, the company is expected to produce and sell at near peak capacity utilisation.
Shares of the company traded 1.32 per cent up at Rs 538.10 on BSE around 9:30 am.