Tata Motors up 13.5 per cent to 9-month high
Fuelled by the robust February sales figures and a better-than-expected third quarter consolidated results, the shares of the country's largest automaker Tata Motors on Tuesday rallied nearly 13.5 per cent.autos Updated: Mar 02, 2010 20:00 IST
Fuelled by the robust February sales figures and a better-than-expected third quarter consolidated results, the shares of the country's largest automaker Tata Motors on Tuesday rallied nearly 13.5 per cent.
Among the 30 Sensex counters, Tata Motors was the biggest gainer of the day, with the scrip hitting a nine-month high zooming 12.10 per cent, after the rating agency Moody's said it may upgrade the rating of Tata Motors following the turnaround of its luxe marque JLR.
The scrip, which opened firmly on the BSE, ended the day at Rs 797.10, up by 12.10 per cent over its previous close. In the day, the stock moved between a high of Rs 808 and a low of Rs 726. Friday the counter closed Rs 711 after rallying over nine per cent.
"Among the Sensex firms, Tata Motors is the lead gainer on the back of its robust February sales figures. The stock also rallied after the rating agency Moody's today said it may upgrade the corporate family rating of Tata Motors on better third quarter results," CNI Research chairman and managing director Kishor P Ostwal said.
On the National Stock Exchange too, the scrip settled the day with a gain of 13.41 per cent at Rs 806.60. Over 1.28 crore shares changed hands on the two bourses and was the volume topper too.
Yesterday, Tata Motors said its sales jumped 58 per cent in February sales at 69,427 units compared to 43,811 units sold in the same month last year.
On Friday, the company reported a consolidated net profit of Rs 650 crore for the December quarter. It had a net loss of Rs 2598 crore in December quarter last year.
With help of the Tata Motors stock, the BSE Auto index surged 4.29 per cent to settle the day at 7,478.81 points.
The Budget has given a boost to auto and auto ancillaries as it did not treat the industry as harshly as the market was apprehending. Led by Tata Motors, the sector recorded recovery on a wide front," Bonanza Portfolio assistant vice-president for equity research Avinash Gupta said.
"Good sales figures of auto companies for February also helped," he added.
The BSE benchmark Sensex today settled at 16,772.56 points, up by 343.01 points or 2.09 per cent.