Top commercial vehicles maker
Tata Motors has fallen 49 percent from its record high of 612 rupees last year as many investors exited the stock on fears that a slowdown in its luxury car unit would be prolonged as the Chinese economy slowed. Tata Motors' JLR unit has China as its main market. A near 50 percent price correction in major stocks is seen as a buying opportunity by many technical chartists.
As a consequence, Tata Motors rose 11.10 rupees, or 3.4 percent, to 335.55 rupees on the National Stock Exchange, where 34 lakh shares were traded compared with the 5-day average of 96.59 lakh shares. The stock, which hit a low of 301 rupees last week, trades at 1.47 times book value of 227 rupees.
Tata Motors has seen its market capitalisation fall 35 percent in the past one year to 96,400 crore rupees.
Shares of Tata Motors DVR rose 17.10 rupees, or 7.7 percent, to 238.30 rupees as well. The DVR, or differential voting rights, stock has corrected 47 percent from its most recent peak of 386 rupees.
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