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Shares of Tata Motors jumped nearly 19 per cent in intra-day trade to hit record high of Rs 332.40, highest since May 11, 2018, on the Bombay Stock Exchange as investors remained buoyed by scrappage policy announced in Union Budget as well as strong monthly sales. The shares of Tata Group company have soared 422 per cent from its 52-week low of Rs 63.60 as on March 24, 2020, while it gained 29 per cent in the last two sessions.      

Extending rally for second session, Tata Motors share price opened higher at Rs 292.75 against the previous closing price of Rs 279.75 on the BSE on Tuesday. During the day's trade, the stock hit fresh high of Rs 332.40, before settling at Rs 322.30, up 15.21 per cent. The market cap of the BSE Sensex heavyweight surged to Rs 99,557.63 crore. Meanwhile, the BSE benchmark Sensex ended at 49,797.72, up 1,197 points or 2.46 per cent.

On the volume front, there was surge in buying as 228.55 lakh shares changed hands over the counter as compared to two-week average volume of 126.64 lakh shares on the BSE.

Also Read: Why Tata Motors share rose over 11% today

Tata Motors has reported 28 per cent rise in total domestic sales at 57,742 units in January 2021, compared to 45,242 units sold in the same month last year. Passenger vehicle sales in the domestic market surged by 94 per cent to 26,978 units as against 13,894 units in the same month previous year. The commercial vehicle sales, however, declined by 3 per cent to 32,909 units as against 33,860 units in the year-ago period.

The auto major reported surge in sales despite hike in prices of its passenger vehicles. The company has raised price of its vehicles up to Rs 26,000, effective from January 22, citing rising input costs and material costs of steel, precious metals and semiconductors.

Also Read: Tata Motors Q3 results: Net profit rises 67% to Rs 2,906 crore on higher sales

For December quarter, Tata Motors reported a 67 per cent year-on-year rise in its consolidated net profit at Rs 2,906 crore on higher sales and cost-saving measures. The company's net revenue rose 5.5 per cent YoY to Rs 75,654 crore during the quarter, while EBITDA (earnings before interest, tax, depreciation and amortisation) margin expanded 540 basis points to 14.8 per cent as compared to same period last year.

Also Read: Budget 2021: Auto stocks surge on scrappage policy; M&M, Tata Motors top gainers 

In Union Budget 2021, Finance Minister Nirmala Sithraman announced a voluntary vehicle scrappage policy, which is claimed to bring Rs 43,000 crore business opportunity by boosting consumption in the auto industry and helping the environment.