The stock has surged over 7% in the past week and is up 21% in the last six months, even as it remains 4% lower on a one-year basis.
Tata Steel shares rose over 3% on Wednesday, tracking a broader uptrend in global steel futures after improved factory data from China signaled a recovery in manufacturing output. That rally continued on Thursday as the stock touched an intraday high on the BSE.
Wednesday’s gains came after China’s factory activity returned to expansion in June. Official PMI and Caixin PMI both showed the highest output readings since November 2024. This lifted global sentiment, with the most-traded September iron ore contract on China’s Dalian Commodity Exchange rising 1.69% to 722.5 yuan ($100.81) per metric ton.
The benchmark August contract on the Singapore Exchange rose 1.82% to $94.9 a ton. Steel futures on the Shanghai Futures Exchange also advanced, with rebar gaining 2.61%, hot-rolled coil up 2.24%, wire rod rising 1.03%, and stainless steel climbing 1.08%.
Other Indian metal stocks also advanced on Thursday, buoyed by positive global cues. The Nifty Metal Index rose 0.8%, with NMDC, NALCO, Hindalco, and Jindal Stainless gaining between 1% and 2%.
UK operations expected to turn around
Investor sentiment was further lifted by comments from Tata Group Chairman Natarajan Chandrasekaran at the company’s annual general meeting. Addressing shareholder queries, Chandrasekaran said Tata Steel’s UK operations are expected to perform “much better this year compared to last year — it will definitely be Ebitda-positive.”
The company’s UK business, which has historically weighed on profitability, is now expected to turn Ebitda-positive in the financial year 2025–26 (FY26), with potential for profitability in subsequent years.
Technicals point to strength
Tata Steel’s technical indicators continue to signal bullish momentum. The stock is trading above all eight of its key simple moving averages, from the 5-day to the 200-day, pointing to sustained strength across short-term to long-term charts.
The Relative Strength Index (RSI) stands at 69.8, just shy of the overbought threshold of 70, suggesting strong buying interest. Meanwhile, the Moving Average Convergence Divergence (MACD) is at 1.9 and remains above both the center and signal lines, reinforcing the ongoing bullish trend.
Tata Steel shares have gained 8% over the past three months and 5% in the last month.
Also read | Tata Steel gets show cause notice over input tax credit of Rs 1,000 cr availed during FY19-23
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