Tata Motors’ share price has fallen more than 13% in the last month and more than 15% year to date (YTD). The car stock has plunged 41% in the last six months and 34% in the last year.
Tata Motors Share Price Hit 52-Week Low After Nine-Day Slump – Further Decline Ahead?
Tata Motors’ share price fell more than 2% on Friday, reaching a new 52-week low under continued selling pressure. Tata Motors shares fell for the ninth consecutive trading day on February 28, reaching a 52-week low of ₹630.15 on the BSE.
Tata Motors stock has dropped by about 46% from its high, losing approximately ₹2 lakh crore in market value.
The drop in Tata Motors’ stock price is principally caused by a dismal demand outlook for Jaguar Land Rover (JLR) in major countries like as China and the United Kingdom, as well as weakness in the domestic passenger car category.
Concerns about prospective US import duties on European-made automobiles also represent a danger to JLR’s sales in the US, which account for 25% of its retail volume.
Tata Motors is projected to post a decline in total wholesales in February 2025. According to brokerage company Motilal Oswal Financial Services, Tata Motors’ vehicle sales in February are expected to rise 5.7% to 81,505 units from 86,406 in the same month last year.
The company’s Passenger Vehicle (PV) sales are forecast to dip 7.3% to 47,560 units this month, down from 51,321 units the previous year. Commercial Vehicles (CV) sales are expected to fall 3.3% to 33,945 units from 35,085 units last year.
What does a technical chart show?
On the technical charts, Tata Motors’ stock price has been testing critical support levels following a failed breakthrough.
After a failed breakthrough at ₹1,065, Tata Motors reached its downside objective of ₹659 but struggled to maintain this support. A significant rebound was expected, but selling pressure has sent the price lower. The next key support level at ₹589 is crucial for weekly and monthly performance. According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, a retest of ₹589 is likely given the current negative momentum.
Tata Motors’ share price has fallen more than 13% in the last month and more than 15% year to date (YTD). The car stock has plunged 41% in the last six months and 34% in the last year.
However, Tata Motors has achieved significant long-term gains, increasing by 50% in the last two years and returning 390% in the last five years.
At 10:20 AM, Tata Motors shares were trading 2.18% down at ₹634.10 a share on the BSE, with a market capitalization of over ₹2.33 lakh crores.
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