Shares of Tata Steel rose as much as 2.7 per cent to Rs 544.80, its highest since December 3.
Ratings agency S&P Global has revised the outlook on the country’s biggest steelmaker to 'positive' from 'stable'.
The revision based on stable steel prices and improvement in earnings, combined with the expectation that the acquisition of Bhushan Power and Steel will not happen, is likely to improve the company's credit ratios in the next 12 months, S&P said.
S&P has affirmed the 'B+' long-term and 'B' short-term issuer credit ratings on unit, Tata Steel UK Holdings Ltd.
S&P expects supportive steel prices and benign raw material prices to continue and forecast TSUKH's funds from operations-to-debt ratio of 13-15 per cent over the next 12-24 months.
Over 3.7 million shares traded in the first hour of trade, which is nearly half their 30-day average volume of 7.8 million.