Shares in Tata Steel fell 4% to Rs 434 in pre-open trade on Friday after the world's No.7 steelmaker reported its first quarterly net loss in more than two years.

Tata Steel, which operates two-thirds of its global capacity of about 28 million tonnes in Europe, warned it did not expect a significant revival in demand in its core markets in 2012.

In comparison, the main 30-share BSE index was down 0.07% in pre-open trade.