Shares in Tata Steel recovered lost ground, after falling a huge 4 per cent, after its quarterly numbers were a huge disappointment to the markets.
The stock was last trading at Rs 225.70, virtually unchanged over Thursday's levels. The company reported a massive loss of Rs 2127 crores for the quarter ending Dec 31, 2015, which saw a sharp reaction in the stock price in early trade.
Tata Steel like most other commodity stocks has plunged after a freefall in commodity prices from metals to oil and gas.
This has led to sharp erosion in profitability of most companies across the globe. It also affected the performance of Tata Steel one of the top players in the domestic steel business, with also a significant global presence.
Global steel prices have collapsed from 460/tonne to 260/tonne in line with the glut in supply and the sharp decline in raw material prices.
"Steel exports from countries such as China,Russia, Korea and Japan have surged to all-time highs on the back of lacklustre domestic demand,excess capacity and competitive currencies. Imports to India are now around 12 mtpa, with China being the largest exporter to India.
Similarly, imports to Europe have increased to around 30mtpa million tonnes, with shipments from China surging by 57%," the company said in a release.