MARKET EYE-India's Tata Motors gains on new launches, value-buying

* Shares of Tata Motors Ltd gain 2.6 percent after

India's top auto maker launches two small cars - the Bolt

hatchback and Zest entry-level sedan - its first new models in

four years on Monday.

* Traders say the new models, along with buoyant sales at luxury

unit Jaguar Land Rover, are driving optimism, while

valuations are seen cheap.

* Tata Motors on Monday turned the cheapest stock on a 12-month

forward price-to-earnings basis on the BSE benchmark index

, Thomson Reuters (Frankfurt: TOC.F - news) data shows.

* Tata Motors is trading at 7.75 times of its 12-month forward

earning estimates compared to BSE index P/E of 13.63 times.

(dipika.lalwani@thomsonreuters.com /

abhishek.vishnoi@thomsonreuters.com)