Tata Motors share prices has again started moving up; despite the fact that the stock is from the rate sensitive automobile sector which could get affected by recent spate of interest rate hikes announced by the RBI. Yesterday, in its mid-quarterly monetary policy review, the RBI hiked repo rate by 25 basis points to 8.25% in order to continue its resistance towards untamed inflation.
Furthermore, the government has also raised petrol prices by Rs.3.14 per litre from yesterday midnight to cover up losses of Oil Marketing Companies as against market-linked international crude prices.
Coming back to Tata Motors, the stock price of the auto major has vaulted by 13% in last three sessions after the company said its global vehicle sales rose 3% to 87,459 in August 2011 over August 2010. Last few months, the stock price of the Tata Motors had been under-performing big time, as its overseas subsidiary of Jaguar-Land Rover was feared to be negatively impacted from the ongoing sovereign crisis in the euro zone.