Tata Motors rallies on order win under JNNURM scheme

NEW DELHI: Tata Motors Ltd rallied as much as 2.6 per cent in trade on Wednesday, after the automobile major received orders for over 2,700 'urban' buses under the Jawaharlal Nehru National Urban Renewal Mission ( JNNURM) - II scheme.

At 09:30 a.m.; Tata Motors was trading 1.6 per cent higher at Rs 524.95. It hit a low of Rs 523.15 and a high of Rs 530.50 in trade today.

The company had received an order from KSRTC ( Karnataka State Road Transport Corporation) to supply 487 buses and another for 780 buses from HRTC (Himachal Road Transport Corporation) for Tata Marcopolo built buses as per Urban Bus Specifications under JNNURM - II scheme, Tata Motors said in a statement.

These orders are part of the over 2,700 orders for Tata Motors buses received under the scheme, it added.

Morgan Stanley upgradeed the stock to "overweight" from "equal-weight." The Bank cited Tata Motor's "attractive" relative valuations and optimism about margins and volumes.

Standard and Poor's raised its outlook to "positive" from "stable." Credit agency cited stronger performance of Tata unit Jaguar Land Rover.

Jefferies also raised its rating on the stock to "buy" from "hold".