Tata Motors Stock Price: Tata Motors’ share price is experiencing significant downward pressure today, reflecting broader challenges within the automotive sector. The stock has plunged by over 4%, reaching an intraday low of ₹840.80, with a notable decline of approximately 13% over the past month.

Market Overview

On October 29, 2024, Tata Motors’ shares fell by 3.04%, underperforming the automobile sector, which itself is grappling with a decline of around 2%. The Nifty Auto Index also reported a decrease of 2%, contributing to the overall bearish sentiment in the market. Several key players in the industry, including Maruti Suzuki and Hyundai, are facing similar pressures as consumer demand softens.

Rising Inventory and Declining Sales

Current reports indicate that dealerships are burdened with high inventory levels, amounting to 7.9 lakh vehicles valued at ₹79,000 crore. According to the Federation of Automobile Dealers Associations (FADA), personal vehicle sales fell by 18.81% year-on-year in September, despite the festive season that typically boosts demand. The prevailing factors such as heavy rainfall, economic sluggishness, and cultural practices like shraddh have adversely impacted market sentiment.

In the second quarter of FY25, Tata Motors recorded a total sale of 2.15 lakh vehicles, down nearly 12% from 2.43 lakh units in the same period last year. This decline, coupled with the company trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, highlights a concerning trend for investors.

Technical Analysis and Earnings Outlook

Technical analysts project continued challenges for Tata Motors, advising a cautious approach. The company is scheduled to report its earnings on November 8, a pivotal moment that could provide further insights into its performance and future trajectory. The current consensus from analysts suggests a “Hold” position, indicating that investors should maintain their existing shares but remain vigilant about market developments.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a qualified financial advisor or conduct your own research before making investment decisions.