Shares of Tata Motors rose up to 3% on May 8 as the New York Times reported, citing three people familiar with the plans, that US President Donald Trump is expected to announce a trade deal between the United States and Britain.
Trump posted on Truth Social earlier that he would hold an Oval Office news conference at 10 a.m. EDT (1400 GMT) on Thursday about a "major trade deal with representatives of a big, and highly respected, country," using all capitalized letters.
He did not offer more details but said it would be the "first of many."
A UK official said on Tuesday that the two countries had made good progress on a trade deal that would likely include lower tariff quotas on steel and autos.
Britain was not among the countries hit with additional tariffs, because it imports more from the U.S. than it exports there.
At 9:37 am on May 8, shares of Tata Motors, the parent company of luxury car maker Jaguar Land Rover (JLR), were trading 2.4% higher at Rs 697 apiece before hitting day's high of Rs 704.5.
If the deal with the UK gets announced, it could be a major positive for Jaguar Land Rover, as nearly one-fifth of its revenue comes from the US market. The company had halted shipments of its vehicles in April owing to the US imposing 25% tariffs on all auto imports. However, recent reports have suggested that shipments have resumed but there has been no official confirmation.
The Tata Motors stock rose on May 7 as well after the announcement of the India-UK Free Trade Agreement (FTA), signed on Tuesday evening. This agreement includes provisions for a significant reduction in import tariffs on premium cars destined for India. Tariffs, previously exceeding 100%, are set to drop to 10% under a quota system.
Also, Tata Motors said on Tuesday its shareholders have approved the company's plan to split the automaker into two listed companies, separating its passenger and commercial vehicle arms.
Tata Motors had said last March that it would divide its commercial vehicle arm from its passenger business, which houses its cash cow luxury Jaguar Land Rover (JLR) brand, to unlock better growth prospects.
The proposal, which would give the shareholders equal stakes in both the listed entities, was approved with 99.9995% of votes, it said in an exchange filing.
With inputs from Reuters
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