Tata Steel's Nov volumes rise, stock up

Tue, 8 Dec 12:30 pm

   Previous Close   

   Pre-Open   

   10:30 am   

   02:30 pm   

   Closing   

The Indian markets continued to trade well above the dotted line during the previous two hours of trade. Buying activity is being witnessed in stocks across sectors led by realty, metal and energy. Stocks forming part of the pharma space are however seeing marginal declines.

The BSE-Sensex and the NSE-Nifty are trading higher by about 100 points and 35 points respectively. The BSE-Midcap and BSE-Smallcap indices are trading firm as well, up by around 0.9% and 1.1% respectively. The rupee is trading at 46.67 to the dollar.

Tata Steel has witnessed a robust 35% rise in sales in the month of November 2009 to 4.98 lakh tonne as against 3.70 lakh tonne in November 2008. This is mainly on the back of improved demand from the construction and whitegoods sectors. During the month, the company has seen a 56% increase in the sale of its flat steel products and a 13% increase in sales of long steel products. The company also saw its saleable steel output rise 16% to 5.25 lakh tonne compared to 4.51 lakh tonne during the same time last year. Its crude steel and hot metal production rose by 2% YoY in November to 5.26 lakh tonne and 5.88 lakh tonne respectively. The rise in the demand for the company's products has a lot to do with the recent buoyancy in auto and whitegoods sectors as also the rising demand from the infrastructure sector. Tata Steel is currently trading higher on the bourses.

As per a leading business publication, wind turbine major Suzlon's German subsidiary REpower expects wind turbine orders to rise next year (2010) on the back of climate change talks that are underway in Copenhagen. This it feels may increase demand for renewable energy and consequently wind turbines. The industry has been pretty low on order inflow in 2009. But the company is now seeing the first signs of that scenario easing up a bit. According to the company's management, the decisions taken at Copenhagen will provide important signals for the industry. Negotiators from 192 countries at Copenhagen may agree on a framework to curb emissions from power plants and factories blamed for global warming, which could potentially provide a big fillip to the wind power industry. Suzlon's stock has seen substantial gains on the back of a spate of orders won by the company and its key subsidiary REpower Systems in the last one month. Suzlon owns 91% in REpower. Suzlon's stock is up roughly 28% in the last one month and is trading marginally upwards currently.