Tata Motors gains on new launches, value-buying

Reuters Market Eye - Shares of Tata Motors Ltd gain 2.6 percent after India's top auto maker launches two small cars - the Bolt hatchback and Zest entry-level sedan - its first new models in four years on Monday.

Traders say the new models, along with buoyant sales at luxury unit Jaguar Land Rover, are driving optimism, while valuations are seen cheap.

Tata Motors on Monday turned the cheapest stock on a 12-month forward price-to-earnings basis on the BSE Sensex, Thomson Reuters data shows.

Tata Motors is trading at 7.75 times of its 12-month forward earning estimates compared to BSE index P/E of 13.63 times.

 

(Reporting by Dipika Lalwani)