Shares of Tata Motors Ltd on Tuesday gained 8.75 percent on NSE to an intraday high of Rs 198.35 apiece. On the previous trading day, that is on Friday, it had closed at Rs 180.30.

While on Friday the shares were driven upwards to Rs 184 after media reports that the automobile company was exploring its options to sell its struggling luxury car unit Jaguar Land Rover Automotive Plc, these reports were later rubbished by the company.

"There is no truth to the rumours that Tata Motors is looking to divest its stake in JLR," a Tata Motors spokesperson told Reuters.

On Tuesday, Tata Motors share price saw a further rise in the early trade session due to an outperforming rating given to the stock by the investment advisory firm Macquarie. For the year 2019, the stock has risen 13 percent at lost 44 percent.

A healthy rise in retail sales by JLR in the US added to the positivity. JLR has reported a 29 percent increase in retail sales in the United States for the month of February. The luxury British brand that is owned by Tata Motors sold 11,616 units in February 2019 when compared to 9,013 units in the same month last year. The reported sales from Jaguar was 59 percent higher on a year-on-year basis, while Land Rover climbed 19 percent.

Macquarie has set a target price of Rs 260 on the Tata Motors stock citing an increase in average incentives from a rise in incentives on Jaguar models. It also expects JLR's cost reduction plans to yield positive results in 2019.

On the domestic sales, however, Tata Motors reported a 3 percent fall to 57,221 units in February 2019 as compared with 58,993 units last year.