This Tata group stock rallies up to 3% on signing 500 million pounds grant agreement with UK

Tata Steel shares in Thursday's trade gained 3 per cent to day's high price of Rs 152.4 after the steel major signed a £500 million grant agreement with the UK government as part of its £1.25 billion green steel project in Port Talbot, Wales.

The funding is suggested to enable the deployment of an electric arc furnace, aiming to reduce the UK's industrial carbon emissions by 8 per cent and cut Port Talbot’s emissions by 90 per cent. 

At the last count, shares traded 0.88 per cent higher at Rs 149.45 per share price on the BSE.

Tata Steel CEO T.V. Narendran said the project, with the government's support, could position Port Talbot as a leading European hub for green steelmaking, contributing significantly to circular economy practices through the use of scrap materials.

Morgan Stanley maintains underweight rating on Tata Steel

The global brokerage has continued with the rating for a target of Rs 135. The  underweight call has been maintained even as the company sees the development to be positive.

Nonetheless, it added that limited clarity on renewed discussions with government has been an overhang. Await clarity on whether there is any additional financial support for affected employees, added the brokerage.

No additional project cost should be viewed as incrementally positive as per the brokerage.