Why Tata Motors' shares are down for 4th consecutive day
What's the story
Shares of Tata Motors have witnessed a decline for the fourth consecutive day, falling by another 1.5% today.
The fall comes despite a trade deal between the UK and the US during the G7 summit in Canada.
The decline was mainly due to Jaguar Land Rover (JLR), Tata Motors' UK division, issuing a subdued guidance for the current financial year.
Trade impact
What does the US-UK trade deal say?
The US-UK trade deal, signed on the sidelines of the G7 summit, will reduce tariffs on UK auto exports to the US from 27.5% to 10%.
This will be effective from the end of this month and will apply to a yearly quota of 100,000 vehicles.
However, despite these reductions, Tata Motors' shares have continued their downward trend.
Figures
A look at the stock prices
On the National Stock Exchange (NSE), Tata Motors opened at ₹686.10 per share and is currently trading at ₹676.10 (down 1.54%). Meanwhile, on the Bombay Stock Exchange (BSE), it is trading at ₹676.90 (down 1.47%).
Forecast
What are analysts saying?
The market's prediction for Tata Motors is divided.
While CLSA has an outperform rating with a target price of ₹805, Jefferies has given an underperform rating with a target price of ₹600.
Morgan Stanley has maintained its equalweight stance on the stock with a target price of ₹715.
Out of 35 analysts covering Tata Motors, 17 have rated it as "buy," 12 as "hold," and six as "sell."