Tata Motors share price gained over 7% in Friday's trade despite the company receiving a downgrade from Moody's Investors Service.
Moody's Investors Service on Thursday said it has lowered corporate family rating (CFR) and senior unsecured instruments rating to B1 from Ba3, as the company faces tough market conditions amid the coronavirus pandemic.
Contrary to the rating upgrade, Tata Motors share price touched an intraday high of Rs 103.8, rising 7.68% against its previous close of Rs 96.40.
Tata Motors stock has risen 8.13% in the last 3 days of consecutive gain. It has gained 25% in one-month period.
Tata Motors shares trade higher than its 5, 20 and 50-day but lower than 100 and 200-day moving averages.
Besdies Tata Motors stock, Bosch, Ashok Leyland and Exide Industries gained over 3%, followed by over 2% gains in Maruti Suzuki and Bharat Forge and over 1% rise in TVS Motor Company, Apollo Tyres and Motherson Sumi Systems.
"The outlook on all ratings has been changed to negative from ratings under review. This rating action concludes the review for downgrade initiated on March 26, 2020," Moody's Investors Service said.
Moody's expects the company to curb the unit sales decline to around 10% in fiscal 2021 from 37 per cent in the prior year, reflecting the company's new model launches compliant with the transition to Bharat 6 emission norms from 1 April 2020.
Shares of Tata Motors closed 6.28% higher at Rs 102.45 on BSE today.