Jul 2, 2025
Indian equity markets are trading lower today, 2 July, led by losses in FMCG and IT stocks.
At the time of writing, the Sensex was down 393 points at 83,303 points. The Nifty was down 124 points at 25,416 points.
The market breadth is slightly negative with more stocks declining than advancing.
Nifty stocks that gained include Asian Paints, UltraTech Cement, Bharti Airtel, Maruti Suzuki, and Tata Motors.
However, the top gainer in the Nifty was Tata Steel.
Here are the reasons for the rally in the stock.
#1 Finalises Contract with Welsh Engineering Firm
Tata Steel announced that it had finalised a major contract with Welsh engineering firm, Systems Group, for the first phase of refurbishing its two continuous casters at the Port Talbot steel plant in South Wales, UK.
The life-extension of these casters prepares the plant for the commissioning of a new electric arc furnace by the end of 2027. This positive news lifted sentiment in the stock.
#2 Rally in Metal Stocks
The Nifty Metal Index rose 1.16% intraday, despite a fall in the Nifty index. Tata Steel shares rose faster than the index rallying more than 3%. Most steel stocks were up today.
There are reports that steel companies would see better performance in Q1 FY26. The hopes are based on falling iron ore prices, as well as a drop in coking coal prices.
#3 Chinese to Continue Production Curb in Tangshan City
There were reports that Chinese steel mills in Tangshan city have received official notice to continue curbing production. This development reflects ongoing environmental enforcement efforts in Tangshan, a key steelmaking hub with over 100 steel mills and an annual crude steel capacity of around 140 million tons.
Globally, metal stocks rallied following the development. Indian metal stocks followed.
What Next?
Tata Steel recently announced the completion of the phase II expansion project at Kalinganagar in Odisha, taking its overall capacity to 26.1 million tonnes (mt) in the country.
With the completion of the 5 million tonne expansion project undertaken at an investment of Rs 270. bn, the capacity of Kalinganagar plant stands at 8 mt from 3 mt earlier.
This is expected to add to revenue and profitability in FY26. Tata Steel has a targeted savings plan of Rs 115 bn in FY26, which should boost margins.
The company has planned capital expenditures of about US$ 1.76 billion for FY25-26 across India, the UK, and the Netherlands, with a significant portion for capacity and technology upgrades in India.
Tata Steel is heavily investing in green steel technologies globally. In the Netherlands, it plans to replace one of its blast furnaces with a new Direct Reduced Iron (DRI) plant powered by hydrogen, aiming for competitive green steel production by 2030.
The company is also actively pursuing a comprehensive debt reduction plan centered on aggressive cost-cutting and operational efficiency improvements across its global operations.
Apart from this, India’s steel demand outlook is positive with an expected CAGR of 8% till 2030. This is due to infrastructure expansion and industrialisation. This should fuel growth at Tata Steel as well.
How Shares of Tata Steel have Performed Recently
Over the last one month, the share price of Tata Steel has gained 3.5% from Rs 159 to the current levels of Rs 165. The shares of the company have lost 6.5% in the last one year.
The stock hit a 52-week high of Rs 178.15 on 4 July 2024. The stock also hit a 52-week low of Rs
122.6 on 13 January 2025.
About Tata Steel
Tata Steel is one of the world’s largest and most geographically diversified steel producer. It has major production facilities in Jamshedpur (Jharkhand) and Kalinganagar (Odisha).
The company operates fully integrated steelmaking facilities, from captive iron-ore mining to finished steel products, which helps maintain cost competitiveness and production efficiency.
Tata Steel also has significant operations in Europe, including the Netherlands and the UK, with a combined crude steel capacity of around 12 mtpa. Its European operations supply high-quality steel to sectors such as automotive, construction, packaging, and engineering.
The company’s product portfolio spans automotive and special steels, industrial products, branded retail products, and services.
To know more, you can check out Tata Steel fact sheet and latest quarterly results. You can also compare Tata Steel with its peers on our website.
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To know what’s moving the Indian stock markets today, check out the most recent share market updates here.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
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