Under the leadership of Tata Motors, Tata Group companies registered an impressive rally in the stock market, share prices increased by up to 20%

 Shares of Tata group companies Tata Motors, Tata Motors DVR, Tata Power, Tata Chemicals and Tata Investment Corporation saw gains of 10 to 20 per cent on Wednesday. Titan, Tata Steel and Tinplate were also among the stocks that contributed to the ongoing rally.

The jump in the shares of Tata group companies came hot on the heels of the acquisition of Air India by Tata group company Tales Pvt Ltd and the announcement has earned Tata Motors Rs 7,500 crore from TPG Rise Climate for its passenger electric vehicle business. Collect. Valuation of up to $9.1 billion.

Tata Motors recently entered into a binding agreement with TPG Rise Climate, under which TPG Rise Climate and its co-investors will invest in ADQ, a subsidiary of Tata Motors, which will be incorporated recently. As per reports, the first tranche of the capital infusion will end by March 22, 2022 and the entire amount will be utilized by the end of 2022.

On the back of this new deal, the share price of Tata Motors rose 20 per cent to a new 52-week high of Rs 506.75 on the BSE on Wednesday. It has gained about 42 per cent in the last 5 days. The stock has gained Rs 149.10 in a matter of 5 trading sessions since closing at Rs 357.65 on October 7. In terms of trading volume, over 89.05 lakh shares were traded on BSE and over 19.79 crore shares in NSE during the day.

The market capitalization of the firm has increased to Rs 1,67,658.94 crore on BSE. It has increased by more than 276.5 percent in the last 12 months and has increased by 175 percent since the beginning of this year.

Apart from the news of capital infusion, the stock's impressive rally can also be attributed to the company's strong volumes and a significant improvement in its balance sheet. The company expects further growth in sales of its product as the economic recovery continues even after the slowdown.

The debt of the organization has come down from 14 billion QoQ to 40.9 billion rupees due to better profitability and improving working capital. Reportedly, its India business cash profit remains higher than CAPEX. New launches, a strong pipeline of products and better sales have dampened the stock rally witnessed in the last few trading sessions.

Tata Motors' DVR, which generally compares Tata Motors' stock, closed 20 per cent higher at Rs 237.30 on Wednesday as well. Soon after the 20 per cent rise in the stock, the upper circuit was triggered, a mechanism enabled by SEBI to prevent operators from driving up share prices.

Since stock prices are mostly driven by sentiment, they tend to fluctuate due to positive and negative news, a circuit filter is installed to ensure that there is no excessive price movement and investors are protected from any unwanted surprises. Be safe The filters also help in limiting the price variation by the stock operators to a certain extent.

Upper circuit limit is the highest price a stock can reach on a particular day. When this limit is touched, there will be only buyers and no sellers. Similarly, the lowest price a stock can hit is the lower circuit limit and when a stock reaches this limit, there will be only sellers and no buyers.

Tata Motors 20% rally kicks off meme fest on social media

As shares of Tata Motors surged 20 per cent, social media websites were flooded with memes as investors expressed excitement with hilarious posts.

An SM user shared a popular meme of Akshay Kumar from his film Phir Hera Pheri where he asked Rajpal Yadav if he had brought money.

Another Twitter user said, "#TataMotors shareholders be equal" and shared a clip from the popular cartoon Looney Tunes, in which animated character Bugs Bunny is seen arranging dollar bills.

Tata group companies recorded impressive gains in the stock market

Tata Power has partnered with Tata Motors, Morris Garages India Ltd and JLR to develop EV charging infrastructure for its customers and dealers, which also includes e-buses used by several state transport utilities. The stock saw a rise of 15 per cent on Wednesday and ended the day at Rs 225.80. The company's shares had gained 26 per cent in the last five trading sessions.

Tata Chemicals was hovering around 970-990 levels for the last few days. But news of an infusion of capital into Tata Motors for its EV product line-up prompted a rise in Tata Chemicals shares as well. After closing at Rs 973 on October 12, the stock opened at Rs 1028.70 on Wednesday, indicating strong demand among investors to invest their money in this Tata group company. Shortly after, the stock closed at Rs 1,150 with a gain of nearly Rs 100, a rise of 15.17 per cent.

Shares of Titan Company Ltd also posted strong gains after the Tata group company reported a strong recovery in demand in the July-September quarter. Shares of Titan closed at Rs 2,540 on Wednesday, up 1.8 per cent from its opening price. With the stock registering a rise of Rs 205.45 or 8.80 per cent in the last 5 trading sessions, the recent sudden price jump in the stock