JP Morgan's Bullish ER&D Report Fuels Rally in Tata Tech, Tata Elxsi, KPIT Tech

• JP Morgan released a bullish report on Engineering Research & Development (ER&D) companies, leading to a strong rally in Tata Tech, Tata Elxsi, and KPIT Tech shares.
• The brokerage increased target prices for Tata Tech (to 710 rupees) and Tata Elxsi (to 4,800 rupees), and gave KPIT Tech an Overweight rating with a 1,400 rupees target.
• JP Morgan cited improved auto ER&D demand, slow but steady OEM orders, and advancements in self-driving vehicles, including Nvidia's Alpamayo AI, as reasons for its bullish outlook.
• Auto tech spending accounts for 100% of KPIT TECH's revenue, 55% for TATA ELXSI, and 82% for TATA TECH, highlighting their significant exposure to the sector.
• Shares of KPIT TECH, TATA ELXSI, and TATA TECH saw significant gains on the NSE, rising by 4.96%, 9.35%, and 4.98% respectively.

Why It Matters: JP Morgan's positive outlook on the ER&D sector drives strong gains for key auto tech-focused companies.