The shares of Tata Steel have increased the most in more than a week mainly due to higher alloy prices and lower input costs.

The investors believed that these factors would help compensate for the loss of from writing down inventory. The shares of the company rose 4.8 percent, which is its highest gain since 1 February to the level of Rs. 471.80 in the early morning trade this morning.

Shares of Tata steel have risen 41 percent this year, compared to a 16 percent in the benchmark, Sensex of the Bombay Stock exchange (BSE).

The company has reported a loss of 6.03 billion rupees in the third quarter. This was due to 7.4 billion rupees at Tata Steel Europe Ltd. and other units. The loss suffered was in contract with the profit of 10 billion rupees a year earlier. Sales of the company increased 15 percent to 329.6 billion rupees.

According to experts, the lower prices of iron ore and coking coal and a an increase in construction in India will boost profits for the company. Group Chief Financial Officer Koushik Chatterjee has announced that Tata Steel increased prices by 1,000 rupees a ton in February.