Shares of Tata Motors Ltd. jumped nearly 7% and hit an all-time high on Friday.
Gains on auto]sector stocks also helped Tata Motors' upward trajectory. The Nifty Auto stock rose as much as 1.69% during the day to 18,719.50.
India is planning to replace 8 lakh diesel buses with electric vehicles in the next seven years in a bid to reduce emissions, according to a report by the Economic Times.
The move is also likely to ramp up investment in electric vehicles. Tata Motors is one of the major electric vehicle manufacturers in the country.
Tata Motors' stock rose as much as 6.5% during the day to Rs 802.90 apiece on the NSE. It was trading 5.77% higher at Rs 797.40 per share compared to a 0.22% decline in the benchmark Nifty 50.
The share price has risen 105.44% year-to-date, making it the only Nifty 50 stock to deliver two-times returns in this period. The total traded volume so far in the day stood at 5.6 times its 30-day average. The relative strength index was at 78, implying that the stock may be overbought.
Twenty-eight out of the 35 analysts tracking the company have a 'buy' rating on the stock, three recommend 'hold' and four suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 6.6%.
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