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Tata Chemical's Stocks Gear Up, Seeks Strength in the Domestic Market than Overseas

  • 10-Dec-2020
  • Journalist: Jaideep

Stocks of Tata Chemicals which were heard trading around INR 300-320 levels for continuous six months till early November, surged by 60% in the last month, touching a 53-week high. Tata Sons Pvt Ltd, on Friday purchased 25.72 equity shares of the Tata Chemicals at INR 121 crore via open market transaction. In its July-September quarter (Q2FY21) results announced on October 29, the Tata Chemical's management revealed that the domestic chemicals market is healing itself from the pandemic induced slowdown much earlier than the global market, driven by rising Soda Ash demand from the detergent and auto industries. The company saw substantial gains in sales across India during Q2, while the trades stood largely flat for UK, US and Africa. Overall, realizations from the chemicals sector remained largely low due to subdued sentiments across the end markets, causing Q2 consolidated revenue to dive by 2%. Currently, the Tata Group commodity chemicals company is the world’s third-largest Soda Ash manufacturer with manufacturing units located across Asia, Europe, Africa, and North America. After Tata Sons raised its stake in the Tata Chemicals by 2.6%, its holding in the later stands at 37.19%. This is likely to bolster investor's confidence in the firm.   

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