** JSW Steel's shares rise as much as 3.3 pct to 266.85 rupees

** Q2 profit surges 27 pct to 8.39 bln rupees ($129.60 mln), helped by higher steel sales, co said on Tuesday

** Benefitted from favourable international markets in early part of qtr, higher domestic demand

** HSBC raises PT to 280 rupees from 240 rupees, expects co to benefit from demand recovery and declining costs

** Emkay Global Financial Services analysts believe co's H2 performance would be better, aided by reduction in cost, improvement in realization and better offtake

** 20 of 30 brokerages rate the stock "buy" or higher, six "hold" and four "sell" or lower; their median PT is 269.50 rupees ($1 = 64.7400 Indian rupees)