Shares in Tata Motors gained as much as 2 percent after its luxury unit Jaguar Land Rover reported on Wednesday that retail sales rose 14 percent to 30,487 vehicles, boosted by a 44 percent rise in China.
Macquarie, in an email to clients, called the Jaguar Land Rover sales growth in China "very strong" .
"We like Tata Motors for its Jaguar Land Rover (JLR) business, which is in the midst of a favourable model cycle," Macquarie said.
"Demand for higher-margin models - Range Rover and RR Sport - remains strong, with wait-lists spanning up to six months," it said. Shares in Tata Motors were up 1.4 percent at 394.20 rupees at 0501 GMT.