Tata Steel surges on planning to renew pact with NMDC

Tata Steel is currently trading at Rs. 422.80, up by 4.05 points or 0.97% from its previous closing of Rs. 418.75 on the BSE.

The scrip opened at Rs. 420.00 and has touched a high and low of Rs. 424.90 and Rs. 420.00 respectively. So far 272860 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 615.90 on 01-Jul-2011 and a 52 week low of Rs. 332.35 on 02-Jan-2012.

Last one week high and low of the scrip stood at Rs. 425.00 and Rs. 405.20 respectively. The current market cap of the company is Rs. 40970.68 crore.

The promoters holding in the company stood at 31.35% while Institutions and Non-Institutions held 42.73% and 24.05% respectively.

Tata Steel, the flagship company of the Tata Group, is keen on renewing the pact National Mineral Development Corporation (NMDC). The company has entered into partnership with NMDC in 2010 for exploring possibilities of joint ventures for acquisition of mines and setting up steel plants.

This partnership has already ended on January 21, 2012. Both the companies now plan to jointly address mining and steel-making opportunities. A working group will be set by two companies to explore the areas of cooperation which will submit its report to a steering committee.

On standalone basis, the company has posted a fall of 8.62% in its net profit at Rs 1560.51 crore for the quarter ended March 31, 2012 as compared to Rs 1707.71 crore for the same quarter in the previous year.   However, total income has increased by 13.68% at Rs 9662.36 crore for quarter under review as compared to Rs 8499.73 crore for the quarter ended March 31, 2011.