Tata Motors shares slip 7%
Tata Motors shares fell more than 7% today along with broader markets as a result of unfavorable global indicators. The Bank of England’s declaration last week that the British economy was in recession has dampened interest in Tata Motors stock today. The UK division of Tata Motors, Jaguar Land Rover (JLR), accounts for 67% of the Indian automaker’s income. The price of Tata Motors’ stock on the BSE dropped 7.02 percent, to Rs 393.35 from its previous closing of Rs 423.05 The price of Tata Motors’ stock is below the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. 6.60 lakh shares of the company were traded in total, resulting in a turnover on the BSE of Rs 26.49 crore.
On the BSE, the company’s market capitalization decreased to Rs. 1.32 lakh crore. In one year, the large cap stock increased by 24.72 percent, but in 2022, it decreased by 18 percent. The sentiment surrounding the company in 2022 has been negatively impacted by cues from the Russia-Ukraine conflict, the global economic downturn following Covid-19 lockdowns, the surge in commodity prices, and a reduction in output due to a lack of semiconductors.
Tata Motors shares
According to Share India’s vice president and director of research, Ravi Singh, “According to the company, JLR is facing challenges as a result of lockdowns in China for COVID-19, problems with the global supply chain at its UK subsidiary brought on by the conflict in Ukraine, and challenging macroeconomic conditions. Financially, JLR may be impacted by these issues in FY23. However, the company’s cars in India, particularly its EVs, remained strong in both the commercial and passenger vehicle segments, which had a short-term positive effect on Tata Motors sales. Due to holiday demand, the stock price may exhibit some strength and reach levels of Rs 500 until Diwali. The JLR sales, which make up the majority of Tata Motors‘ revenue, are cited as the reason why the stock’s long-term outlook is still negative.”