Tata Motors shares extend recovery, surge 10% today1 min read . Updated: 05 Mar 2019, 01:39 PM IST
- Tata Motors shares have continued their rebound since hitting a 52-week low last month
- Other auto stocks were also higher today
Shares of Tata Motors surged as much as 10%to ₹198, continuing their recovery since hitting a 52-week low of ₹141.90 last month. Tata Motors shares had hit a 52-week low of ₹129 on 8 February, 2019, on NSE, and from that level they have rebounded over 50%.
Other auto stocks were also in the limelight today. Ashok Leyland, Hero MotoCorp, Eicher Motors and TVS Motors were up between 2% and 3%. Automobile stocks have underperformed the broader markets in recent months amid a sales slowdown.
On 8 February, Tata Motors shares had tumbled nearly 18% after the automobile maker reported the biggest quarterly loss in India’s corporate history. Tata Motors turned in a third-quarter loss of ₹26,993 crore, mostly due to a massive impairment at Jaguar Land Rover subsidiary. Analysts were expecting a profit.
Last week, media reports, citing sources, had said Tata Motors was considering options, including a minority stake sale in the JLR unit or finding a partner that would jointly develop vehicles and lower costs. However, the automobile maker later denied reports of a stake sale in the JLR unit.
"There is no truth to the rumours that Tata Motors is looking to divest its stake in JLR and we would not like to comment further on any market speculation," the company said in a communication to the stock exchanges on March 1.
Tata Motors reported a 3% decline in domestic sales to 57,221 vehicles in February 2019 as compared with 58,993 vehicles in the same month a year ago. However, the company's passenger vehicle sales in the domestic market increased 2% to 18,110 last month, compared with 17,771 in the year-ago period.
The company said its commercial vehicle sales in the domestic market stood at 39,111 in February, down 5% from 41,222 in the same month of 2018.
In noon trade, Tata Motors shares had pared some intraday gains and were trading at ₹194.65, up 8%, outperforming Sensex which was up 0.20%. (With Agency Inputs)