Tata Steel shares saw profit taking on Thursday after rising as much as 4.6 per cent yesterday. Tata Steel shares gained on Wednesday on hopes that the geopolitical standoff between Russia and Ukraine would benefit the Indian steel maker.
Global investment bank Citi says current diplomatic sanctions imposed on Russia could lead to economic sanctions, which will directly impact trade relations between the European Union and Russia.
The European Union imports several commodities, including steel, from Russia & Ukraine, so future sanctions may result in higher prices for these commodities.
Tata Steel Europe would be a direct beneficiary in this scenario, Citi said.
As of 2.50 p.m., Tata Steel shares traded 2.3 per cent lower at Rs 348.40. The stock has underperformed Sensex by 20 per cent year-to-date.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
