Following the footsteps of Moody's, now Credit Suisse has upgraded Tata Motors from "neutral" to "outperform".  Reuters reported, in a report, Credit Suisse said that the concerns regarding volumes are now abating.

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It said that Tata Motors, in recent times, have under-performed the other auto stocks but the long term story remains promising. Tata Motors has returned 22.72% in last 3 months. 

However, the firm is not so upbeat on the valuations of Mahindra and Mahindra, and downgraded it  from "neutral" to "under-perform" perhaps for being too pricey. M&M has given a return of 16.7% in the last 3 months.

Moody's last week had upgraded ratings of six Tata group firms. The agency upgraded corporate family ratings of Tata Motors to Ba2/Stable from Ba3/Stable.

By upgrading Tata Motors, they equalised the ratings of Tata Motors with Jaguar Land Rover ratings. However, Moody's had explained in media interviews that they would watch the performance of Tata Motors India closely as well, as dependence just on the performance of Jaguar Land Rover could put pressure on the ratings.

On Monday, Tata Motors went up by 4.2% to touch a new high of Rs 541. On Tuesday, it is down 0.85 to Rs 534.70.