Shares of Tata Steel gained as much as 2.3 per cent to 242.4 at its day's high, after the pension deficit at its UK arm narrowed sharply.
Tata Steel said that its UK arm has concluded the actuarial valuation of British Steel Pension Scheme (BSPS) and the deficit in the scheme stands at about 90 million pound (around $138 million) as of March 2014.
The residual deficit of Tata Steel UK, an indirect subsidiary of Tata Steel, stood at around 550 million pound (over $842 million) for the period ended March 31, 2011. Accounting impacts arising from the changes to the pension plan will be recorded in the company's accounts in due course, the filing said.
JP Morgan said the fall in pension liability would have a per share positive impact of Rs 42/share.
At 10:36 a.m., Tata Steel shares were up 1.5 per cent as compared to a 0.34 per cent decline in Nifty.