Tata Motors revs up on fund buying

DALAL STREET SPIKES

Tata Motors witnessed fresh buying as the scrip touched an high of Rs 513.30 in Tuesday's trading. The counter was heavily battered last week even after the company registered a 180 per cent growth in net profit for the quarter ended December 31, 2003.

The stock plunged 18 per cent in just three trading sessions last week to Rs 416.80 on 22 January 2004 against a high of Rs 509 on January 19, 2003.

According to market sources, fund-based buying was witnessed at this counter at lower levels. Analysts attribute a higher growth in commercial vehicle sales during the current fiscal as the main reason for a renewed buying in auto stock including Tata Motors.

Also shareholders' approval to increase FII limit to 35 per cent from 24 per cent lead to aggressive buying with more than 5.4 lakh shares being traded on the BSE.