Credit Suisse upgrades Tata Motors, downgrades Mahindra & Mahindra

Credit Suisse on Tuesday upgraded Tata Motors to "outperform" from "neutral" saying near-term concerns were on factors such as volume abating.

The financial services company said Tata Motors shares under-performed the auto sector recently and the "long-term story remains promising".

However, Credit Suisse downgraded Mahindra and Mahindra to "neutral" from "outperform" saying Mahindra's valuations were no longer "attractive."

Tata Motors shares initially gained as much as 0.5 per cent to a record high at Rs 542.60 on the Bombay Stock Exchange (BSE), but gave up gains and was down 1.74 per cent in afternoon trade.

The shares have surged over 8 per cent in last four sessions.

Shares of Mahindra and Mahindra were trading at Rs 1351.15 per scrip, down 20.3 points (or 1.48 per cent) in afternoon trade on the BSE.

(Reuters)