Tata Motors rallies over 5%

The stock rallied 8% to Rs 322 on the BSE and recorded its sharpest intra-day gain in past two years

Tata Motors has rallied 8% to Rs 322 on the BSE and the NSE in early morning trades on reports that Peugeot in talks with the company to make cars in India and reports that its Jaguar Land Rover (JLR) unit’s US sales surged. The stock recorded its sharpest intra-day gain in past two years.

Earlier, in September 10, 2013, it rallied 10.8% during intra-day trade after the company's unit Jaguar Land Rover (JLR) reported a strong sales numbers for the month of August. The stock had finally closed 9.9% higher on the BSE.

According to Economic Times report “PSA Peugeot Citroen and Tata Motors are in talks to form a partnership that might result in Tata producing and distributing the French giant's cars in the Indian market.” CLICK HERE TO READ FULL REPORT.

JLR, the company's luxury car division, reported a 61% jump in total sales in the US market in September, compared to a 12% rise in sales in August.

JLR sold 6,850 units in the US market in September. Sales of the Land Rover vehicles rose 89% year-on-year to 5,855 units, while those of Jaguar fell 13% to 995 units. JLR had posted a 12% rise in US sales in August.

Meanwhile, the company has said the rating outlook on Tata Motors has been revised to ‘Stable’ from ‘Positive’ on account of China slowdown and continued capex.

“We would like to inform you that Standard and Poor’s Rating Services has vide its Research Update dated September 29, 2015, reaffirmed the existing rating of ‘BB’ and there has been no change in the rating,” Tata Motors clarified on news report titled S&P cuts Tata Motors rating to 'Stable' on China jitters.

At 10:00 am, the stock was up 6% at Rs 316 on the NSE. A combined 6.11 million shares changed hands on the counter on the NSE and BSE.