Barclays makes Tata Steel its top sector pick in Asia

Reuters
The Tata Steel logo is seen at the Tata Steel rails factory in Hayange
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The Tata Steel logo is seen at the Tata Steel rails factory in Hayange, Eastern France, September 25, 2013. REUTERS/Vincent Kessler/Files

Reuters Market Eye - Barclays upgrades Tata Steel Ltd(NSI:TATASTEEL.NS - News) to "overweight" from "equalweight" and raises its target price to 358 rupees from 264 rupees, citing improving business outlook.

Barclays says it turns positive on Tata Steel based on early signs of a demand rebound in Europe, flexibility in the steel maker's domestic capital spending plans, the sale of non-core assets and improving domestic volume growth.

The investment bank adds Tata Steel becomes its top pick among steel producers in the Asia ex-Japan region after the upgrade.

Tata Steel shares are up 0.7 percent at 302.50 rupees at 1014 am.

(Reporting by Abhishek Vishnoi)

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