Tata Motors slips as S&P revises outlook from positive to stable

MUMBAI: Shares of Tata Motors remained subdued in early trade even as the ratings agency Standard & Poor's revised its outlook to 'stable' from 'positive' on expectation that the leverage of the owner of marquee brands Jaguar and Land Rover (JLR) would rise.

S&P's revision comes on the back of JLR raising capex in current fiscal for product development and capacity addition to about Euro 2.8 billion per year from Euro 2 billion in the fiscal year ended March 2013.

The rise in stock price was also supported by management comments that it may raise prices before the forthcoming festive season.

"We are not ruling out the possibility of price hike across the models before the forthcoming festive season," Ankush Arora, senior vice-president for passenger vehicles business unit at Tata Motors said.

At 09:45 a.m.; the stock was at Rs 297.85 down 0.67 per cent, on the BSE. It touched a high of Rs 301.45 and a low of Rs 296.40 in early trade.