Tata Motors up on optimism about JLR sales outlook

MUMBAI (Reuters) - Shares in Tata Motors gained as much as 5.2 percent on Thursday on hopes that higher sales at its Jaguar Land River unit, especially in China, would help offset declining sales in its home market.

Nomura upgraded the stock to "buy" from "neutral" saying that JLR's China volumes should improve as the company resolves production issues, while an improving U.S. outlook was a positive for the luxury auto market.

On Wednesday the auto maker posted a drop in first-quarter profit, but posted higher margins and China sales for JLR were encouraging for investors.

Tata Motors shares were up 1.8 percent at 10:38 a.m.

 

(Reporting by Himank Sharma; Editing by Rafael Nam)