Tata Motors jumps 10% after Brexit deal ‘agreed’
Investors hurriedly bought Tata Motors shares on Thursday after the news of Britain and the EU reaching a new Brexit deal reached Dalal Street.
According to reports, a Brexit deal has been agreed between UK and EU negotiating teams before a meeting of European leaders in Brussels, post which the benchmark Sensex closed 453 points higher while Tata Motors jumped 9.82%on the BSE to ₹138.15 a share.
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Jaguar Land Rover, the UK subsidiary of Tata Motors, is one of Britain's largest automotive manufacturers. The company's performance had taken a hit owing to Brexit related uncertainties.
Easing trade tension & positive development on Brexit provided further boost to the market, analysts said.
"The Brexit deal is yet to be passed by the parliament but if the uncertainty ends, it is positive for auto industry and IT companies abroad," Deepak Jasani of HDFC Securities said.
Foreign media cited a statement from British Prime Minister Boris Johnson and European Commission President Jean-Claude Juncker according to which the UK and EU have greed a new withdrawal deal on Thursday.