Tata Motors in topdrive on FMspeak, rising sales

DALAL STREET SPIKES

Auto major Tata Motors rallied 4.8 per cent on BSE to close at Rs 492 from a previous close of Rs 470. The company witnessed a rise in sales in August.

Moreover, hopes of a cut in excise duty on small cars as announced by the finance minister on Thursday also helped the rally in the stock.

By the afternoon trade, 5.8 lakh shares changed hands. It may be recalled that after a surge during late June to early August, the stock had come off the higher level as high global crude oil prices affected the auto stocks.

In August, Tata Motors' total vehicle sales increased by 20 per cent to 36,205 units from 30,113 a year earlier. Exports more than doubled to 5,256 units from 2,465.

Moreover, commercial vehicle sales rose 25 per cent to 17,070 units, while sales of cars and utility vehicles fell 0.6 per cent to 13,879 units.