Tata Steel back in the limelight
Tata Steel is in the limelight today and its UK unit remains the big reason. Yesterday, the stock had hit a new 52-week low at Rs.291.15 and today, it has bounced back. It is currently up almost 2% at Rs.300 with an intra day high at Rs.304.80. Volumes though remain muted at 1.75 lakh shares.
The stock is up today on news that industrial action by workers atTata Steel has been temporarily suspended so a new offer on pensions can be considered. Unions said that during talks at the conciliation service Acas, and continuing dialogue with the company, negotiators secured a new offer which they said means the pension scheme would remain open.
Consultation will begin with a meeting of senior union delegates from across the company on Friday.
Members of four unions at the steel giant banned overtime and launched work-to-rule action early on Tuesday morning in protest at plans to close their final salary pension scheme. A 24-hour strike is due to be held from next Monday, 22nd June.
Thus the stock is up on hopes that these negotiations scheduled for Friday will avert the strike and the company will be back to business.