What China Has To Do With Tata Steel's 6% Jump Today

Tata Steel’s share price shot up on Monday as robust industrial output growth in China drove expectations of higher steel demand.

What Happened: Tata Steel saw massive volumes of nearly 10 crore shares changing hands—more than double the average of the previous month. Notably, large trades comprising 2.3 crore shares contributed to this heightened activity.

Other metal stocks also experienced gains, riding on the wave of China’s impressive January-February industrial output growth, which expanded by 7%, surpassing Bloomberg’s estimate of 5.2%. The Nifty Metal index edged up by 0.3%.

See Also: This Pharma Stock Has Slumped 11% In 30 Days, But Analysts Forecast Over 110% Rally Ahead

China’s industrial output growth outpaced December’s 6.8%, exceeding analysts’ expectations of a 5% increase.

Import Concerns: This comes after China, the world’s leading steel producer, exported a substantial 1.75 million metric tons of finished steel to India during the first 10 months of the fiscal year, marking a six-year high and an 80% increase from the corresponding period last year.

In response to this trend, India implemented a five-year anti-dumping duty targeting specific types of Chinese steel in September, aimed at curbing imports priced below fair market value. More restrictions on steel imports are expected from India to support local manufacturing.

Price Action: Tata Steel’s share price was up nearly 6% at ₹150.15 in late afternoon trade on Monday. Over the past year, Tata Steel’s share price has surged by almost 40%.

Read Next: Woman Finds 8 Cockroaches In Her Dosa, Files Complaint Against Restaurant

Loading...
Loading...
Market News and Data brought to you by Benzinga APIs

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesLarge CapMacro Economic EventsNewsEconomicsMarketsMoversTrading IdeasTata Steel