New York, NY ( TheStreet) -- Tata ( TTM) has been sending a positive message to the market -- and sending its shares soaring in afternoon trading.

The market is smiling on Tata and its stock has skyrocketed 10.1% to $15.80.

Recently Tata has been making impressive recoveries following the auto industry downturn last year.

For example, Tata sold 54,108 commercial and passenger vehicles worldwide in November or 65% more than the same time last year. In its home country of India, Tata sold 50,114 commercial and passenger vehicles, 64% more than it sold the same time last year.

Of course, the satisfying results were partly amplified by particularly slow sales last year.

Tata is India's largest auto company, with a consolidated revenue of $14 billion from 2008 to 2009. The first company from India's engineering sector to be listed on the NYSE, Tata has made a name for itself globally. Last year Ford sold its Jaguar and Land Rover operations to Tata.

At the beginning of last year, Tata unveiled the Nano, dubbed "The People's Car" for its safety and affordability. Tata sold 3,406 Nanos in November and says that its delivery of the Nano has been increasing every month since the launch.

Morgan Stanley analyst Binay Singh has upgraded Tata to overweight from equal-weight on a belief that Tata's newly acquired Jaguar Land Rover business "will start steering towards breakeven," CNBC reports.

Singh wrote that the company's second-quarter results released on Friday showed an operating profit for Jaguar Land Rover, and Singh believes it will show a net profit in fiscal 2011, CNBC reports. Singh also noted that the Indian commercial vehicle market should continue to be profitable, which is reflected in Tata's stock performance.

The auto sector has been performing quite well on Tuesday afternoon as a whole, though modestly compared to Tata. Toyota ( TM - Get Report) is up 3.8% at $81.50, while Honda ( HMC - Get Report) stock has risen 5% to $32.60. Daimler ( DAI) is up 4.5% at $53.20. Ford ( F - Get Report) has climbed 1.2% higher at $9 after reporting stronger November vehicle sales.

-- Reported by Andrea Tse in New York

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