Jaguar Land Rover owner Tata Motors saw shares rise by more than five per cent yesterday in the latest sign of confidence returning to the automotive sector.
The Mumbai-based firm was the biggest gainer on the Bombay Stock Exchange benchmark Sensex as the 30-share index jumped by 387.92 points, or 2.55 per cent, to close at 15,628.75
Analysts said the share prices were boosted by US Federal Reserve chief Ben Bernanke’s comments that he thinks a global recovery is at hand.
A better trend in global base metal prices in London provided additional support.
Tata had given an unexpected boost to the global car sector by reporting a 59 per cent profit rise in the three months to June, despite falling sales.
It made a pre-tax profit of £69 million in the quarter, compared to £43.4 million in the same period last year.
The company reported quarterly revenues of £806.4 million, a fall of 7.6 per cent compared to the same period in 2008. It benefited from a 24 per cent fall in raw materials bills, which is Tata’s biggest expenditure, as a result of easing commodity prices, as operating margins grew from 7.1 per cent last year to 11.4 per cent.
However, the acquisition of Jaguar Land Rover pushed Tata Motors to its first consolidated loss in more than seven years.
