Shares of Tata Motors are surging. Know why

Shares of Tata Motors Ltd., India's top vehicles maker, rose 3 percent on value buying after the auto giant's stock was thrashed over the last 3 months owing to macro problems in its main market: China.

Tata Motors has slumped from a high of 612 rupees hit in early February as macro concerns about a slowdown of demand of its main products -- Jaguar and Land Rover vehicles -- from China emerged. Unit sales have slumped as the luxury car market in China shows signs of fatigue for all car makers such as BMW, Mercedes and Tata.

A 33 percent price correction from record highs is often considered a point of reversal, according to technical studies.

Meanwhile, shares of Tata Motors rose 2.7 percent, or 10.40 rupees, to 401.20 rupees on the National Stock Exchange. Its Futures traded volume was the highest since May 27th, making it the second most traded futures. Its DVR was the 2nd top price gainer in the F&O Space as well.

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