MARKET EYE-Tata Motors shares slump; JLR unit says to hike capex

* Shares in India's Tata Motors Ltd slump as much as 5

percent after the auto maker said luxury unit Jaguar Land Rover

Ltd would increase its capital spending to around

3.5 billion pounds to 3.7 billion pounds in fiscal year 2015

from an estimated 2.75 billion pounds in fiscal 2014.

* However, the planned increase in JLR's capital spending could

lead to negative free cash flow in fiscal 2015, Tata Motors said

in the statement.

* The estimate was provided in a statement on its website. A

company official did not respond to Reuters queries about the

timing of the statement.

(abhishek.vishnoi@thomsonreuters.com /;

abhishek.vishnoi.thomsonreuters.com@reuters.net)