Why Tata Steel is the biggest Nifty gainer today

The Tata Steel stock was the biggest Nifty gainer in Thursday’s morning trade, rising over 4 per cent to Rs 511.40. In comparison, the broader Nifty was trading flat.
The spike was likely on the back of global brokerage CLSA raising the target price for Tata Steel to Rs 710 from Rs 570 earlier.
CLSA said the probability of hiving-off Tata Steel’s Europe business into an SPV (special purpose vehicle) with Thyssenkrupp has risen, adding that Europe outlook for the company has improved after the sale of loss making units.Outlook for the the steel major’s Indian business is also improving, the brokerage said. Tata Steel is expected to see a 17 per cent CAGR (compound annual growth rate) in EPS (earnings per share) over 2016-17 to 2019-20, it said.
The brokerage reiterated its “buy” call on the Tata Steel stock.
Rival steel maker JSW Steel also rose nearly 4 per cent to Rs 202.40.
CLSA has also raised its target price for JSW Steel to Rs 300 from Rs 185 earlier. The brokerage raised the 2016-17 to 2019-20 EPS estimates for JSW Steel by 31-44 per cent, saying the company could benefit majorly from the improving demand-supply scenario in India.
At 10:52 am the JSW Steel stock was trading at Rs 201, up 2.81 per cent, while Tata Steel stock was up 3.57 per cent at Rs 508.35 whereas the broader Nifty and Sensex were trading flat.