Tata Motors shares gain on China sales relief

Last Updated: Fri, Mar 22, 2013 04:57 hrs

Shares in Tata Motors gain 1.3 percent, recovering from the previous session's falls after unit Jaguar Land Rover Ltd (JLR) said late on Thursday it did not expect sales in China to be hurt by the new fuel standard norms in the country.

"The business is not anticipating any negative impact on sales in the Chinese market," JLR said in a statement, citing steps already taken to downsize engines, reduce vehicle weight and a new diesel technology.

Shares in Tata Motors fell 4.2 percent on Thursday on worries that China's new stringent fuel economy standards, which mandate tough emission rules by 2015, would adversely impact JLR's sales in the country, its fastest-growing market.

Morgan Stanley recommends using weakness in Tata Motors shares to add positions and maintains its "overweight" rating on the stock.

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