Tata Motors rallied on Monday after reports emerged that PSA Peugeot Citroen and Tata Motors are in talks to form a partnership that might result in Tata producing and distributing the French giant’s cars in the Indian market.

The stock was among top gainers on both Sensex and Nifty.

The shares also got a a boost after the company’s September MHCV sales beat estimates, while unit Jaguar Land Rover US Sept sales rose 61 per cent.

The share price of the company closed 6.13 per cent up at Rs 315.20 on BSE.

Tata Motors’ sales of passenger cars in September were higher by 5 per cent at 10,226 units, as compared to 9,766 units in same period of last year.

Meanwhile, BSE has sought clarification from Tata Motors with reference to news of Peugeot. As per media reports, the company is in talks with PSA Peugeot Citroen to form a partnership that might result in Tata producing and distributing the French giant’s cars for
the Indian market.

With PTI and Reuters inputs