Tata Steel is up 3.9 per cent, making it the best performer in the NSE index, which is up 0.78 per cent. It is heading towards its biggest single day gain since May 5.
Analysts say the company is looking to deleverage and improve return ratios amid weak global steel consumption.
The company has spun out its long products unit into a standalone business to better pursue strategic options.
Tata Steel was in talks to sell its long products operation to the Kelsch Group, which has withdrawn from the negotiations.
Also, Titan Company announced that Tata Sons would acquire 19.4 million shares from Tata Steel on or after August 11