Shares of Tata Motors stood as the top gainer in Monday's trade and with a jump of close to 13 percent, the stock hit its fresh 52-week high price of Rs. 225.4 per share on the NSE. Now even as the broader sentiment was a key trigger, there was optimism in the whole auto pack after the sector reported jump in sales for the first time in FY21.
And now, talking specifically of the Tata Motors scrip, the counter buzzed in trade today primarily on the back of the news that it is very close to ink an MoU with Tesla for manufacturing and selling their vehicles in India using Tata's facilities.
Also, unofficial news also suggest that the EV manufacturing company has already carried out due diligence and comes to the conclusion that Tata's have the best infra to support EV manufacturing in India among all other domestic auto majors. Last month, Union road and transport minister Nitin Gadkari confirmed that Tesla will begin its operation in India in 2021.
Further another likely trigger is better than expected sales for the auto maker for both its domestic as well as JLR businesses. For the December month, the company's sales stood at 53,430 units, up 21 percent in comparison to last year.
Interesting since March lows of Rs. 63.5, the stock gained 250%, tripling investors' money.