Tata Motors Share Price Crashes 5.80%: What Investors Should Know About Today’s Fall
Key Highlights:
On April 4, 2025, Tata Motors Ltd. witnessed a sharp decline in its share price, plummeting by ₹37.95 or 5.80%, to close at ₹616.00. This drop marked one of the steepest single-day falls for the auto giant in recent months, raising concerns among retail investors and institutional stakeholders alike.
- Opening Price: ₹650.00
- Intraday Low: ₹615.20
- Previous Close: ₹653.95
- P/E Ratio: 5.41
- 52-Week Low: ₹606.30
- Market Cap: ₹2.27 Lakh Crore
Also Read: Hindalco Industries Tanks Over 6% As Global Trade War Fears Hit Metal Stocks | Coforge Share Price Crashes Over 6% Amid IT Selloff – What’s Behind the Drop?
Reasons Behind the Fall
1. Global Market Sell-Off
The Indian stock market, including the Nifty 50 and Sensex, opened lower today in line with weak global cues. A sweeping tariff announcement by US President Donald Trump triggered fears of a global trade war, leading to a sell-off across global equities.
2. Auto Sector Weakness
Auto stocks have been under pressure due to muted volume growth and chip shortage concerns resurfacing in Europe. Tata Motors, with significant exposure to international markets through its Jaguar Land Rover (JLR) business, remains highly sensitive to global disruptions.
3. Profit Booking Near Key Levels
The stock touched ₹650.00 at the open, close to its recent resistance zone. Investors and short-term traders used this level to book profits, especially after Tata Motors’ recent rally over the past month.
4. Concerns Around Margin Pressure
Analysts anticipate margin compression in Q4FY25 due to rising raw material costs and potential pricing pressure in the domestic passenger vehicle (PV) segment. This has led to downgraded forecasts by certain brokerages.
Expert Opinions
Ravi Singh, VP of Research at Share India: “Tata Motors’ decline today is largely sentiment-driven due to global cues. However, structurally, the stock remains strong, especially with the upcoming EV launches and improving sales data in India. Investors can look to accumulate at ₹600–₹610 levels.”
Kavita Dalal, Technical Analyst at Axis Securities: “Technically, the stock broke its key support at ₹620. If it sustains below ₹610, we could see a further dip toward ₹590. Resistance is now at ₹630.”
Fundamentals Remain Sound
Despite today’s dip, Tata Motors’ fundamentals continue to be strong:
- Robust EV Roadmap: Tata Motors leads the EV segment in India, with Nexon EV and Tiago EV seeing strong demand.
- JLR Turnaround: Jaguar Land Rover has reported steady recovery in sales and margins, especially in China and the UK.
- Debt Reduction: The company continues to reduce its debt burden, a key concern for long-term investors.
What Should Investors Do?
| Investor Type | Recommended Action |
|---|---|
| Long-term Investors | Hold – Fundamentals remain strong; use dips to accumulate. |
| Short-term Traders | Wait – Avoid fresh entry until stability is confirmed above ₹630. |
| Risk-Averse Investors | Watch Closely – Stay cautious if it breaks ₹600. |
While today’s 5.80% drop in Tata Motors’ share price may cause short-term anxiety, it’s essential to look at the bigger picture. The fall is primarily driven by global risk-off sentiment, not by company-specific weaknesses. Investors should focus on the company’s long-term electric vehicle vision, improving profitability at JLR, and strong domestic presence before making any hasty exit decisions.
Stay tuned for Q4FY25 earnings, which could provide better clarity on the company’s operational trajectory.
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