Majority of the steel stocks are trading in the green with Tata Sponge and Adhunik Metaliks being among the major gainers whereas JSW Steel and Tata Steel are among the few stocks trading in the red. As per a leading financial daily, Tata Steel opened its largest centre for cutting steel plates in UK raising its plate processing capacity in the region by 50%. The centre is set up at Steelpark in Wednesfield at a cost of 3.1 m pounds. The centre is equipped to provide steel plates cut and finished to exact size, shape and quality specifications to service customers in the lifting, excavating and construction sectors. Tata Steel on a consolidated level registered an operating profit growth of 60.4% YoY in September 2013 quarter. This was due to outperformance in its European operations aided by a decline in raw material costs and various cost saving initiatives taken by the company. Tata Steel's stock is currently trading marginally down.
As per a report by World Bank, growth in global economy in 2014 is expected to improve from 2.4% last year to 3.2% and retain the pace over the next two years. The gain in momentum of advanced economies is expected to support stronger growth in developing countries as per the report. The World Bank expects the developing economies to grow at a moderate pace of 5.3%. While China and India are expected to see stronger growth, however, concerns on their macroeconomic woes remain. India has struggled with inflation and currency depreciation whereas China has been caught in a vulnerable banking sector and overinvestment. The bank noted that the negative effect of taper is likely to be offset by stronger growth in high-income countries.