Tata Steel surges after April-June profit doubles

Reuters Market Eye - Tata Steel Ltd shares up 5.3 percent, after earlier rising as much as 8.95 percent, after the company's quarterly profit nearly doubled as costs fell sharply, making up for a dip in sales.

Tata Steel, which is India's top steelmaker by market value, also said on Tuesday it expects demand to recover by the end of the year in Europe, where it derives two-thirds of its 27 million tonne annual capacity.

Macquarie upgrades Tata Steel to "outperform" from "underperform" and raises its target price to 294 rupeesfrom 242 rupees earlier citing strong results, driven by recovery in European operations.

 

($1 = 61.0850 rupees)

(Reporting by Abhishek Vishnoi)