Tata Motors Down 2%; Hits 52-Week High

Shares of Tata Motors fell by 2% on February 28 to hit a fresh 52-week low amid heightened selling pressure. Continuing their declining spree for the ninth consecutive session, the shares traded at ₹630.15 apiece on the BSE.

The market capitalisation has eroded by ₹2 lakh crore, down 6% from its peak.

The downfall in the shares can be attributed to weak demand outlook for Jaguar Land Rover (JLR) in markets like China and the UK and muted sales in the domestic passenger vehicle segment.

In addition to this, concerns around potential U.S. import tariffs on European-made vehicles will affect JLR's sales in the US, which constitutes 25% of its retail volumes.

Tata Motors is set to report poor sales in February 2025. As per brokerage firm Motilal Oswal Financial Services, sales in February is estimated to grow by 5.7% at 81,505 units from 86,406 units in the year-ago period.

Passenger Vehicle (PV) sales in this month are expected to fall by 7.3% to 47,560 units from 51,321 units last year. Sales of commercial vehicles are set to decline by 3.3% YoY to 33,945 units.

What do the brokerages say?

Anshul Jain, Head of Research at Lakshmishree Investment and Securities said, “Tata Motors, after a failed breakout at ₹1,065, has finally hit its downside target of ₹659 but struggled to hold this support. A sharp bounce was anticipated, but selling pressure has pushed the stock lower. Now, the next major support at ₹589 — a critical weekly and monthly level — is in focus. With bearish momentum prevailing, a retest of ₹589 seems highly probable.”

Tata Motors has declined by 13% in the last month and has tumbled more than 15% on a year-to-date (YTD) basis. The stock has fallen by 41% over the past six months and 34% over the past year.

As of 10:20 am, shares of Tata Motors were trading at ₹634.10 apiece on BSE, down 2.18%.