Capacity expansion plan lifts Tata Steel

DALAL STREET SPIKES

Shares of Tata Steel moved up 1.98 per cent as the company announced mega expansion plan. The stock recovered from its intra-day low of Rs 293.75 to hit a high of Rs 308.40, before closing at Rs 306.75.

According to the information, the company has planned a mega capacity expansion of 2.4 million tonnes. This is the biggest one-time expansion by the steel major. The planned expansion is expected to be completed by 2009 and will take its annual capacity to 7.4 million tonnes.

The counter was very active and accounted for volumes of 1.34 crore shares at the BSE. The stock has recovered from its low in the last few trading sessions on value buying and expectation that Chinese demand would pick up in the coming months.

From a low of Rs 270 on June 23, the stock has now appreciated in past few trading sessions to yesterday's close of Rs 306.75.