Shares of

Tata Motors

extended gains for a second straight session on Thursday, rising as much as 3.5per centto ₹704 on the BSE amid optimism around the

India-UK trade deal

, a proposed demerger, and other bullish triggers. The stock has now climbed 9per centover two sessions, rebounding nearly 30per centfrom its April low of ₹542.55.

A flurry of high-impact triggers has sent Tata Motors stock surging. These five stand out:

1. India-UK FTA could turbocharge JLR

A breakthrough Free Trade Agreement between India and the UK, announced this week, has raised hopes of a more favorable export regime for

Jaguar Land Rover

(JLR), the British luxury carmaker owned by Tata Motors.

The trade deal is expected to lower import duties on vehicles from 100per centto 10per centunder a quota system, potentially boosting JLR’s volumes in India and strengthening its competitive edge.

2. UK-US trade deal hype adds to momentum

Sentiment got an extra lift from speculation that a separate UK-US trade deal may be imminent. U.S. President Donald Trump is expected to announce the agreement on Thursday, according to The New York Times, citing sources familiar with the matter.

Trump teased the deal on Truth Social, stating he would hold a news conference at 10 a.m. EDT (1400 GMT) in the Oval Office, calling it a “major trade deal with representatives of a big, and highly respected, country.”

A UK official confirmed that the two nations had made significant progress toward a trade deal, which is likely to include lower tariff quotas on steel and automobiles. The reduction in tariffs could have significant positive implications for Jaguar Land Rover (JLR) and other UK-based manufacturers, further boosting Tata Motors' global strategy and investor confidence.

3. JLR clocks strong Q4 sales

Jaguar Land Rover reported solid sales for the March quarter, underscoring a recovery in key markets. Wholesale volumes rose 14.4per centin North America and 10.9per centin Europe, helping the company reach a net cash positive position — a milestone in its “Reimagine” strategy.

Total volumes for Q4FY25 were up 6.7per centsequentially and 1.1per centyear-on-year, even as softness persisted in China.

4. Demerger plan seen as value unlocking

Tata Motors recently proposed a strategic demerger of its operations into two separate listed entities: one housing the Commercial Vehicles (CV) business, and another including the Passenger Vehicles (PV), electric vehicles (EV), and JLR units.

The demerger plan is aimed at sharpening business focus, enabling agility, and unlocking long-term shareholder value — a move that analysts and investors have widely endorsed.

5. Technical rebound from April lows

Beyond the news-driven catalysts, Tata Motors’ stock is benefiting from a sharp technical rebound. The stock has surged nearly 20per centin the last month and has gained 8per centin just the past week. Thursday’s intra-day price of ₹704 marks a 30per centrecovery from its April 7 low of ₹542.55.

Technical indicators suggest a mixed picture. While the stock is trading below three out of eight key simple moving averages (SMAs), including the 100-day, 150-day, and 200-day SMAs, the momentum remains positive in the short term.

The 14-day Relative Strength Index (RSI) stands at 58.0, indicating that the stock is neither overbought nor oversold. The current level reflects healthy buying interest without entering overbought territory, supporting the ongoing rally.