Wed Sep 11 06:58:19 UTC 2024: ## Tata Motors Shares Plunge Below Rs 1,000 Mark, Driven by Concerns Over JLR Sales and Market Sentiment

**MUMBAI, INDIA – September 4, 2024** – Tata Motors Ltd. shares experienced a significant decline on Wednesday, dropping below the crucial Rs 1,000 mark for the first time since July. The stock fell by 5.83% to a day low of Rs 975.05, marking a 17.30% dip from its all-time high of Rs 1,179.05 reached on July 30.

Heavy trading volume accompanied the stock’s downward movement, with over 10.95 lakh shares changing hands, more than double the two-week average. This decline can be attributed to several factors, including concerns over Jaguar Land Rover’s (JLR) sales performance, rising inventory levels in dealerships, and the anticipation of Hyundai Motor India’s upcoming IPO.

Global brokerage UBS maintained its “Sell” call on Tata Motors, citing JLR’s shrinking order backlog and potential rising discounts for its top-tier models. UBS analysts predict significantly weaker financials for FY26, warning of moderating growth and the lack of new petrol/hybrid launches.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, highlighted the growing inventory issue facing automakers, which could impact profit margins. However, he acknowledged Tata Motors’ strong position in the EV market and suggested that investors with a long-term perspective could consider holding the stock.

Technical analysts also weighed in, predicting further dips in the short term. Osho Krishan of Angel One identified support levels at Rs 980-960 and Rs 940, while Ravi Singh of Religare Broking advised investors to consider buying on dips around Rs 920. AR Ramachandran and Rupak De, analysts from Sebi-registered firms, expressed concerns about the stock’s negative trend, citing daily chart indicators.

Despite the recent downturn, Tata Motors remains a prominent player in the Indian auto market, known for its strong presence in the electric vehicle segment. However, the company will need to address concerns over JLR’s performance and navigate the increasingly competitive landscape to regain investor confidence.

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