Tata Motors Shares Rise 4% Amid US-UK Trade Deal Optimism; Know How It Impacts The Stock
Tata Motors shares extended their upward momentum for a third consecutive session on Friday; Key points for investors
Tata Motors Share Price: Tata Motors shares extended their upward momentum for a third consecutive session on Friday, rising as much as 3.5% to touch an intraday high of Rs 704 on the BSE. The rally is being fuelled by a series of positive developments, including the India-UK Free Trade Agreement (FTA), strong Jaguar Land Rover (JLR) sales, and the company’s strategic demerger plan.
Market experts attribute the stock’s rise to several key drivers. These include optimism over the India-UK FTA and its likely benefits for JLR, anticipation around the UK-US trade agreement, encouraging Q4 sales numbers from JLR, and the demerger initiative aimed at unlocking shareholder value.
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The recently announced India-UK FTA is expected to significantly lower import duties on premium vehicles—from around 100% to 10% under a quota mechanism. This is seen as a potential game-changer for JLR, enhancing its competitiveness in India and boosting sales volumes. In the March quarter of FY25, JLR reported a 6.7% sequential increase in sales and a 1.1% year-on-year growth, despite persistent headwinds in the Chinese market.
Further boosting sentiment, Tata Motors recently unveiled a restructuring plan to separate its Commercial Vehicles (CV) business from its Passenger Vehicles (PV), Electric Vehicles (EV), and JLR operations into two independently listed companies.
The move is aimed at improving operational efficiency and agility, with the long-term goal of unlocking greater value for shareholders. The proposal has garnered strong backing from both analysts and investors.
What’s Next for Tata Motors Stock?
Tata Motors shares opened at Rs 662.60 on Friday and hit an intraday high of Rs 706.45. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock is showing signs of a technical turnaround after a period of underperformance.
“The stock has formed a solid base near its 200-week simple moving average, suggesting the potential for a sustained rebound. A bullish breakout pattern is also visible on the daily chart," Bhosale noted. He added that the stock could demonstrate relative strength amid the ongoing geopolitical tensions between India and Pakistan. A strong support zone lies around Rs 600, while the next key resistance level is near the 200-day SMA at Rs 820.
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