The wheels of fortune seem to be changing for the Tata Group Companies, especially Tata Motors. More or less all the stocks of group’s listed companies, excluding a few, recorded smart gains on the bourses on Friday (27 March). According to the analysts, booking for Nano is going to start from April 9 and the upfront payments, which the company can keep for at least three months at 8.75 per cent rate, are likely to help in solving the company’s liquidity crisis.

 

Mr. Arun Kejriwal of KRIS told that considering the pent-up demand for the low-cost car and the limited availability, bookings for Nano will ensure a steady and robust flow of liquidity for Tata Motors in the next few months. Mr. Gul Teckchandani, a market strategist, said that the stocks of the group companies were beaten down firmly in the bear phase that started with credit and liquidity crisis. Tatas have been always known to deliver even in the worst of times. As the global crisis seems to weaken, investors would return to the group.

 

Last year, Tata Group faced problems in raising funds through debts. Credit rating of the top group companies also dropped and interest burden battered profitability. Mr Kejriwal made a point that the situation was turning for the better which was indicated by the overwhelming response towards the Tata Capital NCDs; a positive change in the steel cycle in the October-December quarter helped Tata Steel stand firm.