Tata Motors Ltd’s shares jumped as much as 20% on Thursday, making it the top gainer among Nifty and Nifty Auto stocks. News that its subsidiary Jaguar Land Rover (JLR) has resumed production in China, its key market, rekindled hope among investors.
The stock has fallen 67% between mid-January and early April, and the recent recovery has helped trim only about 20% of the losses.
Tata Motors shares are still down 53% from its highs this year. Needless to say, given the covid-19 pandemic and its consequences on consumer demand for vehicles, a sustained sales uptick may take some time.
But, resumption of production across countries suggests that the worst is behind the company. The company said it has resumed three-fourth of its budgeted