Shares of Tata Motors continued gaining momentum for the third straight session on Friday, surging over 15 per cent on the Bombay Stock Exchange (BSE), after its British arm Jaguar Land Rover (JLR) reported a consistent improvement in China sales for the fifth consecutive month in November. The rally was also attributed to victory of British Prime Minister Boris Johnson in the UK election, which renewed hopes that the Brexit could happen by January 2020. A confirmation on Brexit would end uncertainty for Tata Motors as a big chunk of their business is based in the UK.
British Prime Minister Boris Johnson returned to 10 Downing Street after his Conservative Party won the UK general election with a comfortable majority. In the pre-election manifesto, the Conservative leader had promised to get Britain out of the European Union by January 31 and a new trade deal would be signed by the end of 2020.
Extending previous session rally, Tata Motors share price gained as much as 6.08 per cent to touch an intraday high of Rs 183.90 against previous closing price of Rs 173.35 on the BSE. At the time of reporting, the stock trimmed its early morning gain and was trading 1.90 per cent higher at Rs 176.65. In comparison, the S&P BSE Sensex was up 1 per cent, or 409 points, at 40,991.
Tata Motors shares were trading 23.15 per cent lower than its 52-week high of Rs 239.30 touched on April 18, 2019. There was a surge in trading volume as 43.16 lakh equity shares changing hands on the counter, against a two-week average of around 19.77 lakh shares on the BSE.
In a similar fashion, Tata Motors share was trading 2.22 per cent higher at Rs 177.20 apiece on the NSE. The shares opened at Rs 177.25 against Thursday's closing price of Rs 173.35 and touched an intraday high of Rs 183.95.
Meanwhile, BSE Auto index of which Tata Motors is a constituent, was trading at 18,021.15, up 1.25 per cent.
Tata Motors-owned Jaguar Land Rover (JLR) has reported a fifth straight month of double-digit sales growth of 29 per cent in China despite a 3.4 per cent decline in total retail sales in November. The retail sales fell 3.4 per cent year-on-year to 46,542 units in November due to weak demand in the UK, Europe and overseas market.
Edited by Chitranjan Kumar
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today