Shares of Tata Steel fell about 3 percent on Wednesday at around 10.45 am after the steelmaker said that even as crude steel production grew, delivery volumes dropped in the April-June quarter hurt by the export duty levy. The shares were trading at Rs 854.50, 0.8 percent lower at around 1.20 pm, on BSE.

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“In the first quarter of FY23, crude steel production stood at 4.92 million tonnes (MT), a growth of 6 percent YoY. Deliveries, at 4.06 MT, were lower by 2 percent YoY due to moderation in exports following the imposition of 15 percent export duty,” Tata Steel said in an exchange filing.

In India, Tata Steel produced 4.92 MT of steel in the April-June 2022 quarter, a rise of 6 percent over 4.63 MT a year ago.

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Tata Steel Europe produced 2.43 MT of steel as against 2.67 MT a year ago, while sales in Europe fell to 2.16 MT from 2.35 MT earlier.

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Production at Tata Steel Thailand during the said period fell to 0.31 MT, compared with 0.35 MT a year ago. Its sales stood at 0.31 MT compared with 0.35 MT in the year-ago period.

The deliveries under the automotive and special products segment increased by 22 percent YoY on a broad-based recovery across all sub-segments. For the industrial products and projects segment, deliveries increased by 8 percent YoY, primarily driven by an increase in sales of value-added products to key segments like engineering, etc.

Rajat Bose of Rajatkbose.Com told CNBC-TV18 that, “Tata Steel is very close to its 200 week exponential moving average, which is around Rs 790. So I would say that the stock if it were to fall below Rs 820, to about Rs 790 support area, then only he should consider exiting it. But the fear that I have is that the 20 week and 50 week moving average has given a date cross and that suggests that this moving average is definitely going to be tested again and might get breached”.

Shahina Mukadam, an independent market expert, said that metal stocks have corrected quite a bit actually in the last couple of weeks, in line with the overall metal prices.

“Having said that, I think at current levels I would suggest that the investor continues to hold Tata Steel. Being an integrated steel producer, there will be some support in prices, support in realisations because of the rupee depreciation that is one. Also being an integrated player I think the softness in iron ore prices would be I mean, to some extent positive for the company,” she said.

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(Edited by : Shoma Bhattacharjee)

First Published:Jul 5, 2022 4:14 PM IST