Posted on April 8, 2025, by Niftynews
Tata Steel share price plummeted over 30% from its 52-week high due to tariff issues. The company reported a 5% decline in consolidated steel production for Q4 FY25 and underperformed its sector, while domestic deliveries rose amid increased demand.
Tata Steel’s stock price has seen a significant decline of over 30% from its 52-week high. The recent drop comes amidst global tariff tensions and a 5% decline in consolidated steel production for Q4 FY25. Despite these challenges, the company reported growth in its domestic deliveries, benefitting from the increase in domestic demand.
Tata Steel Share Price Decline: The Impact of Tariffs and Production Drops
Tata Steel share price recently slumped more than 30% from its 52-week high amidst the ongoing tariff issues and production hurdles. The company recorded a 5% decline in consolidated steel production, amounting to 7.45 million tonnes (MT) for Q4 FY25, primarily impacted by the ongoing transition in its UK operations.
Key Production Figures:
- Q4 FY25 steel production stood at 7.45 MT, a 5% decrease from the previous quarter (7.85 MT).
- FY25 consolidated steel production increased by 3.53% year-on-year, reaching 30.75 MT.
- The company reported a 5.34% increase in consolidated sales for Q4 FY25.
Should You Buy, Sell, or Hold Tata Steel Shares Now?
Tata Steel share price opened at ₹134.45 on the BSE and touched an intraday low of ₹128.40, reflecting a significant decline in value.
- Rajesh Bhosale, an equity technical analyst at Angel One, advises that short-term traders may continue to see underperformance in Tata Steel stock due to ongoing tariff issues and should consider exiting. However, for long-term investors, he suggests that the next key support level lies in the range of ₹115-120, and accumulating positions on dips could be a strategic move.
- Riyank Arora, a technical analyst at Mehta Equities Ltd, agrees with the assessment that Tata Steel’s share price has corrected by 30.25% from its 52-week high. He highlights ₹120 as a major support level, with ₹140 acting as immediate resistance. Investors may consider holding existing positions and accumulating more shares slowly on dips, but only with a strict stop loss below ₹120.
Tata Steel’s Positive Domestic Demand: Key Highlights from Q4 FY25
- Domestic Deliveries: Tata Steel saw a rise in domestic steel deliveries in Q4 FY25, increasing to 5.6 million tonnes, compared to 5.42 million tonnes in Q4 FY24. This surge is attributed to higher domestic demand for steel.
- Production Growth in India: Tata Steel India’s production grew by 5% year-over-year to approximately 21.8 million tonnes, attributed to the commissioning of the country’s largest blast furnace at Kalinganagar and increased production at Neelachal Ispat Nigam Limited.
Tata Steel’s Challenges Amid Tariff Wars: Global Impact
The ongoing global trade tensions, particularly the imposition of tariffs, have contributed to the decline in Tata Steel stock. The company’s recent underperformance is part of a broader trend where steel and metal stocks have been significantly impacted by tariffs imposed by major economies, including the US and China. These global uncertainties and market volatility are key reasons behind the current dip in Tata Steel’s share price.
What Investors Need to Know: A Cautious Approach
Investors considering whether to buy, sell, or hold Tata Steel shares need to closely monitor key technical levels and macroeconomic factors, such as:
- Global tariff issues
- Steel production trends
- Domestic demand growth
For the short term, the stock may face challenges due to market volatility and tariff concerns. Long-term investors may consider accumulating positions around support levels, but with caution.
Tata Steel Stock Price:
- Current Price: ₹129
- 52-Week High: ₹526
- 52-Week Low: ₹317
- Support Level: ₹120
- Resistance Level: ₹140
