Tata Steel Ltd shares flat, outperforming the Nifty's 0.63 percent fall after a unit on Tuesday agreed to buy a 51 percent stake in an iron ore project held by Canada's Labrador Iron Mines Canada for C$30 million.

Deutsche Bank sees the deal as a positive development for Tata Steel.

"Apart from gaining access to 14.3 million tonnes of new attributable iron ore resources located adjacent to its existing deposits, the strategic agreement will also help drive synergies in operations and logistics," the bank says.