Tata Steel share price has tumbled from ₹ ₹ 1357.90 to ₹ 1010 apiece levels in last two months

Tata Steel share price continues to dip further and inched close to its 52-week low of ₹ 991.80 apiece levels on NSE. Tata Steel share price today opened with a downside gap of near ₹ 15 per share and went on to hit intraday low of ₹ 1010.65 levels on NSE, around ₹ 20 away from its 52-week low. In last two months, Tata Steel share price has tumbled from ₹ 1357.90 to ₹ 1010 levels, logging near 26 per cent dip in this period.

As per stock market experts, metal prices have corrected to the tune of near 25 per cent in last few months and it is expected to further go down from current levels. They said that after the government of India imposed excide duty on steel exports, they are not going to get much overseas business as they used to get in last few years. Apart from this, monsoon season is fast approaching in which demand for metal products are expected to go down further. So, Tata Steel is expected to report lower Q1FY23 earnings in comparison to Q4FY22 numbers. They expected more weakness in the stock in next 2-3 months.

Speaking on the fundamentals in regard to Tata Steel shares, Saurabh Jain, Vice President — Research at SMC Global Securities said, "Tata Steel share price tumble can be attributed to these reasons — fall in steel prices in international market, GoI imposing excise duty on steel exports, rise in production cost and lower demand for steel products in upcoming monsoon season."

Saurabh Jain of SMC Global Securities said that in last few months, steel prices have fallen near 25 per cent in the global merchandise and it is expected to dip further. Apart from this, Tata Steel is expected to lose a big amount of export business after the imposition of excise duty on steel imports. At the same time, production cost of steel has gone up as well. So, Tata Steel may report lower earnings in Q1FY23 in comparison to Q4FY22.

Giving 'sell on rise' tag to Tata Steel shares, Rohit Singre, AVP — Technical Research at Bonanza Portfolio said, "Tata Steel has strong support at ₹ 990 levels but once it breaks this resistance, which looks possible, then there can be more downside expected. So, it is one of the best stocks available in current stock market that qualifies for 'sell on rise' tag."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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