As reports trickled in about global steel majors Mittal Steel and Arcelor getting ready to tie a knot, domestic steel companies appear to be cheering the development as their share prices jumped on the Bombay stock Exchange.
After opening on a subdued note and keeping in the red through the morning trade, in-line with the broader market movements, steel scrips bounced back sharply from their lower levels by the midday trade and settled with gains of up to 7 per cent at the end of the trading session.
World's largest steel maker Mittal Steel said on Friday it was pleased with the developments related to its takeover bid for Arcelor, while fuelling speculations that the deal might finally close soon after a five-month bidding war.
According to a French newspaper report, Arcelor's board of directors is scheduled to meet on June 25 and a final decision is likely to be announced after the meeting.
There are reports about Mittal Steel raising its offer for the world's second largest steel maker Arcelor to $30.7 billion from $23 billion.
An eventual merger of Mittal Steel and Arcelor is expected to lead to further firming up in global steel prices due to consolidation in the industry.
The metal index shot up by 217.45 points to 8,292.84, with Tata Steel, also a Sensex candidate, was up by Rs 22.85 to Rs 512.25, Sterlite surged by Rs 7.56 to Rs 394.30, Sail by Rs 5 to Rs 79.25, Sesa Goa Rs 80.40 to Rs 1,136.85, Maharashtra Seamless Rs 12.50 to Rs 317.65, JSW Steel Rs 11.80 at Rs 269.80 and Jindal Steel by Rs 10 to Rs 1,404.20.
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