Tata Motors share value declined over 2% on Friday to hit a recent 52-week low amid persistent promoting stress. Tata Motors shares prolonged its fall for the ninth consecutive buying and selling session on February 28 and touched a 52-week low of ₹630.15 apiece on the BSE.
Tata Motors inventory is down greater than 46% from its peak, eroding about ₹2 lakh crore in its market worth.
The decline in Tata Motors’ inventory value is primarily pushed by a weak demand outlook for Jaguar Land Rover (JLR) in key markets equivalent to China and the UK, together with softness within the home passenger car phase.
Moreover, issues over potential US import tariffs on European-made autos pose an additional danger to JLR’s gross sales within the US, which accounts for 25% of its retail volumes.
Tata Motors is anticipated to report a drop in its complete wholesales throughout the month of February 2025. In accordance with brokerage agency Motilal Oswal Monetary Providers, Tata Motors’ auto gross sales in February is estimated 5.7% to 81,505 models from 86,406 models in the identical interval final 12 months.
The corporate’s Passenger Automobile (PV) gross sales this month is anticipated to fall 7.3% to 47,560 models from 51,321 models, year-on-year (YoY). Business Autos (CV) gross sales are more likely to decline 3.3% to 33,945 models from 35,085 models, YoY.
What do technical charts present?
On the technical charts, Tata Motors inventory value has been testing key help ranges after witnessing a failed breakout.
“Tata Motors, after a failed breakout at ₹1,065, has lastly hit its draw back goal of ₹659 however struggled to carry this help. A pointy bounce was anticipated, however promoting stress has pushed the inventory decrease. Now, the following main help at ₹589 — a vital weekly and month-to-month stage — is in focus. With bearish momentum prevailing, a retest of ₹589 appears extremely possible,” mentioned Anshul Jain, Head of Analysis at Lakshmishree Funding and Securities.
If this stage fails, Jain believes additional draw back could unfold, and he suggests buyers to observe value motion rigorously.
Tata Motors share value has declined over 13% prior to now month and greater than 15% on a year-to-date (YTD) foundation. The auto inventory has fallen 41% over the previous six months and 34% over the previous 12 months.
Nonetheless, in the long run, Tata Motors has delivered robust returns, gaining 50% over the previous two years and delivering multibagger returns of 390% over the previous 5 years.
At 10:20 AM, Tata Motors shares had been buying and selling 2.18% decrease at ₹634.10 apiece on the BSE, with a market capitalisation of over ₹2.33 lakh crore.
Disclaimer: The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint. We advise buyers to verify with licensed specialists earlier than making any funding selections.
