Nano propels Tata Motors's stock, yet fails to sustain gains

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Mumbai, Jan 10 (UNI) Auto major Tata Motors's shares gained over four per cent after the launch of its most awaited Rs one lakh car, 'Nano', but failed to sustain gains on increased selling pressure and tumbled by 2.8 per cent to end at Rs 749.

At a time when benchmark Sensex hit an all-time intra-day high beyond 21,200 points, Tata Motors share, on Bombay Stock Exchange (BSE), hit a day's high of Rs 802.30 on stimulated buying interest of the investors in mid-morning trading session, after the launch of the world's cheapest car. However, on the sentiments of local equity market, it slid into the negative zone to end the day, brokers said.

Brokers opined that the sentiments associated with the launch of 'Nano' triggered a huge buying demand for Tata Motors shares, which rallied till afternoon. Later, since the market plunged heavily, creating a gap of 600 from its intra-day high on strong prevailing selling pressure, stocks failed to sustian the presure and went into the red, they added.

At the BSE, after opening 3.8 per cent higher at Rs 799.90, the scrip rallied to an intra-day high of Rs 802.30. It dropped to an intra-day low of Rs 744.05, after paring all the gains seen in the morning trade and ended after slight recovery in the late trade.

At the NSE, it resumed the day smartly at Rs 783 and surged 4.12 per cent, to touch an intra-day high of Rs 802 before finally closing at Rs 749.20. Over 44 lakh shares changed hands at the two exchanges.

Tata Motors today launched its eagerly awaited 624cc (33 horse power) Rs one lakh car, christened 'Nano', in New Delhi.

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