Tata Motors, the maker of JLR luxury brand of vehicles, surged to its highest level since November 10 on substantially higher volumes as investors ploughed fresh funds into the company and traders punched in speculative long bets in its futures.
Tata Motors rose 2.2 percent, or 11.7 rupees, to 534.10 rupees on the National Stock Exchange. It was the top gainer on the Nifty and the second most traded stock by value with 163 crore rupees worth of shares changing hands in the first two hours of trade on the NSE alone. Volumes so far on Thursday have been the highest since September 28 and the stock has recovered 25 percent from its most recent low of 428 rupees high on December 5.
Its delivery percentage in relation to overall trade has steadily risen in the past week. Tata Motors futures were also the most active futures instrument traded on the derivatives market.
As far as monthly domestic sales for December are concerned, the company won 150 bps worth of market share in medium and heavy commercial segment to 50.2 percent on year. In the light commercial vehicle segment, the company added 190 bps market share in the 2-3.5 ton segment where Mahindra & Mahindra dominates.
Overall, the company's wholesale sales of Jaguar and Land Rover vehicles rose 4.1 percent to 53,063 units. Sales of Jaguar vehicles gained 81 percent to 15,879 units in December and combined JLR sales on the retail front were up 12 percent to 55,375 units.
As a consequence, brokerage Motilal Oswal raised its price target on Tata Motors to 696 rupees a share in its most recent report floated on January 10.