Tata Steel gets rating upgrade, stock rises 4%

Shares of Tata Steel Ltd rose over 4% after India Ratings (a Fitch Group company) upgraded the debt instrument rating of the firm from ‘AA+’ Positive to ‘AAA’ Stable. Tata Steel stock rose 4.12% to Rs 137.70 against the previous close of Rs 132.25 on BSE. Market cap of the firm rose to Rs 1.70 lakh crore. Total 7.95 lakh shares changed hands amounting to a turnover of Rs 10.80 crore on BSE. The Tata Group stock has a one-year beta of 1.4, signaling high volatility during the period. 
 
The stock is trading lower than the 100 day, 150 day, 200 day but higher than the 5 day, 10 day, 20 day, 30 day and 50 day moving averages. In a year, the stock has fallen 1.38%.

The relative strength index (RSI) of Tata Steel stock stands at 48.8, signaling it's trading neither in the overbought nor in the oversold zone.

"India Ratings and Research (Ind-Ra) has upgraded Tata Steel Limited’s (TSL) long-term debt rating to ‘IND AAA’ from ‘IND AA+’ with a stable outlook, while affirming the short-term debt rating at ‘IND A1+," said Tata Steel.

"The upgrade reflects the likelihood of reduced losses at Tata Steel's UK operations over FY26-FY27 and eventual profitability. The UK government has undertaken to fund GBP500 million of the total GBP1.25 billion capex for the replacement of blast furnaces with more cost-efficient and environment-friendly electric arc furnace, said the credit rating agency.

"Tata Steel successfully shut down both its blast furnaces at the UK in September 2024. As per management, Tata Steel’s UK assets are likely to breakeven in 2HFY26. Any higher-than-expected capex at the UK assets however will be a key monitorable," added India Ratings.