Commodity Online
MUMBAI: Tata motors gained by close to 4% on the buying rally during the afternoon trading hours on the BSE as the company launched its much hyped Rs. one lakh car, Nano today.

The stock was trading at Rs.167.10 up by 3.85% from its previous close. However, the stock prices had jumped to Rs.169.25 or over 5% in the opening trading session on the Bombay Stock Exchange (BSE). The stock hit a high of Rs 173.85 and a low of Rs 165 so far during the day. The stock had a 52-week high of Rs 742.79 on 22 May 2008 and a 52-week low of Rs 122 on 20 November 2008.

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However, over past one month the stock price had appreciated by 26% from Rs.132.10 during mid February to Rs. 167 at present. According to available reports, Tata Motors is likely to book nearly 10 lakh cars in the first fortnight starting from 23rd March, 2009. The bookings are believed to start from today, while the deliveries would begin next month. Company plans to put the car on display at its dealerships from first week of April this year.

As the company is said to be utilizing steel from its partner company Tata Steel, the positive response from the market for the small car would boost the performance of both the companies. Tata Steel Ltd was trading firm on the BSE today. The stock price stood at Rs.193.75 with a rise of over 10% during the final hour of the trading on BSE today.

Steel prices have fallen 60% in the past six months to USD 500 per tonne, thereby the wafer thin margins of Nano is expected to give good returns to the company. Steel accounts for 65% of its total material costs.

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