Shares of India's biggest steelmaker, Tata Steel, jumped as much as 3.2 per cent. The stock was the top percentage gainer on NSE index and gained the most in a week.

Tata Steel had on Monday reported that its consolidated net profit in the June quarter more than doubled to Rs 1,934 crore (Rs 921 crore) on the back of lower base, fresh revenue from Bhushan Steel (holding company Bamnipal Steel) and better realisations in India.

Total revenue was up 22 per cent at ₹37,434 crore (₹30,780 crore). The company has made a provision of ₹344 crore for various claims against ₹617 crore logged in last year.

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Jefferies has raised the price target to Rs 602 from Rs 586. It has kept 'hold' rating on strong Q1. The brokerage says adjusted India EBITDA is slightly better than expected, and Tata Steel Europe margins surprised positively. However, Jefferies expects margins in India and Tata Steel Europe to soften.

Investec has raised the price target to Rs 730 from Rs 720, and maintained 'buy' on strong results. It says the “watertight” joint venture with Thyssenkrupp and walking away from Bhushan Power are key positives.

Citigroup has hiked the price target to Rs 765 from Rs 750. It has maintained 'buy' rating. It expects steel spreads to sustain with strong steel demand and continued capacity constraints in China.

More than 7.3 million shares traded as of 0439 GMT, compared with 30-day average volume of about 8.1 million. About 22 of 26 brokerages rated the stock “buy” or higher, three “hold” and one “sell” or lower; their median price target is Rs 748.50, according to Thomson Reuters data.

(With inputs from Reuters)