Tata Motors was the top gainer on Nifty 50 on Wednesday as shares of the company climbed over 4 percent to an intraday high of Rs 165.45 apiece on NSE. The stock has risen 13.16 percent from 13 November's close of Rs 146.20.
Markets were open for one hour on 14 November on account of Mahurat Trading on the occasion of Laxmi Pujan. Trading was closed on 15 (Sunday) and 16 November (Diwali).
The stock climbed initially on account of Mahurat Trading but the rally continued after an Economic Times report said that the Tata Motors' bookings rose 95 percent this festive season and retail sales were up 90 percent compared with the festive season of last year. As per the report, cars and utility vehicle sales have seen equal traction from the market, with Harrier retails witnessing the highest growth at 141 percent.
Post lockdown and other movement restrictions, consumer demand is being estimated to have recovered partially on a feel-good buying spree and partially on pending purchases that were postponed in the previous months.
The increase in sales will aid recovery in Tata Motors' profits that were hurt due to Brexit and massive losses from its arm Jaguar Land Rover, which accounts for about 80 percent of the company's revenue.
The auto maker's losses widened during the September-ended quarter as sales continued to remain lower than the previous year, but the company performed better than market expectations on the back of cost savings and deferred tax credit.
Further, JLR returned to profitability with a pre-tax profit of £65 million. Its revenue declined by 29 percent to £4,352 million.