Why Tata Motors share is the top loser on Sensex, Nifty today

Tata Motors share price fell in early trade after its UK arm Jaguar Land Rover (JLR) clocked a fall in February sales. Tata Motors share price fell 3.65% to 182.30 compared to the previous close of 189.20 on BSE. Tata Motors share price has fallen 46.81% during the last one year and gained 6.60% since the beginning of this year.

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15 of 37 brokerages rate Tata Motors share "buy" or 'outperform', 18 "hold", three "underperform" and one "sell", according to analysts' recommendations tracked by Reuters.

Tata Motors share price was trading above its 50-day moving average of 174.26 and below its 200-day moving average of 195.21 levels, respectively.

On BSE, Tata Motors share hit 52-week high of 372.40  on April 5, 2018 and 52-week low of 141.90  on February 8, 2019.

Tata Motors turnover rose to Rs 14.88 crore with 8.07 lakh shares changing hands on BSE. Tata Motors was the top loser on Sensex and Nifty today.

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On Nifty, the stock fell nearly 3.50% to 182.25. Morgan Stanley said for the stock to re-rate, JLR needs to exhibit stable and positive free cash flows. It  maintains 'equal-weight' on the stock with a price target of Rs 184.

Positive free cash flows can be achieved either by strong internal cost cutting and a China rebound, or the company could tie up with another player to share capex spending, the brokerage said. JLR recorded a 4.1% year on year fall in retail sales in February at 38,288 vehicles.

Weak customer demand in China coupled with run out of the old Range Rover Evoque led to the weak sales show for the UK-based firm.

JLR Retail sales rose significantly in North America (25.4%), UK (11 .3%) and modestly higher in Europe (1.1 %) but weaker market conditions continued to weigh on sales in China (down 47.6%). Jaguar retail sales in February were 12,235 vehicles, up 5.8% year-on-year reflecting increased sales of E-PACE and the all-electric I-PACE.

Land Rover retailed 26,053 vehicles in February, down 8.1% year-on-year as strong sales of refreshed Range Rover and Range Rover Sport were more than offset by the run out of the Evoque and lower sales of other models primarily impacted by the weaker conditions in China.

Edited by Aseem Thapliyal