Tata Motors rebounds on Macquarie outperform report

Country's largest commercial vehicle maker Tata Motors rose more than one percent in morning trade on Friday after the foreign research house Macquarie rated the stock outperform with a target price of at Rs 360.

Macquarie is confident that the company will be able to meet the China fuel efficiency norms by 2015.

At 09:52 hours IST, shares moved up 1.32 percent to Rs 277.35 on Bombay Stock Exchange.

However, the stock plunged more than 4 percent to Rs 273.75 on Thursday after reports that stringent new emission norms in China could hurt sales of company's luxury Jaguar Land Rover unit.

According to new fuel economy rules, passenger cars' average fuel consumption would be cut to 6.9 litres per 100 kilometres by 2015 and to 5 litres by 2020 in China.

Further, new National V emission norms, based on Euro V standards kicked in Beijing earlier this month in a bid to curb pollution, which hit record levels in January.

China is a big market for luxury automobile makers. It accounts for 20 percent of JLR's revenue. JLR is building a new manufacturing plant in China in joint venture with local automobile maker Chery.