Tata Motors shares in focus: Two factors that may move the stock today

Shares of Tata Motors are in focus today after CARE Ratings upgraded the credit rating of the Tata Group's auto firm. The long-term rating of Tata Motors has been revised from CARE AA-/Stable to CARE AA/Stable, said Tata Motors.

On Thursday, Tata Motors stock ended 0.33% lower at Rs 568.25 against the close of Rs 570.15 in the previous session. Tata Motors stock opened higher at Rs 571.25. Market cap of the firm fell to Rs 1.88 lakh crore. Total 3.17 lakh shares changed hands amounting to a turnover of Rs 18.08 crore on BSE. Tata Motors stock has gained 37.31% in a year and risen 46.42 per cent in 2023. Tata Motors stock hit a 52-week low of Rs 375.50 on December 26, 2022 and a 52 week high of Rs 576.50 on June 8 this year. Currently, the Tata Motors stock stands 1.45% away from the 52 week high.

In terms of technicals, the relative strength index (RSI) of Tata Motors stood at 72.1, signaling it's trading in the overbought zone. Tata Motors stock has a one-year beta of 1.2, indicating high volatility during the period. Tata Motors shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

On May 26, Moody's Investors Service said it has upgraded its rating outlook on Tata Motors to positive from stable. Moody's also affirmed the company's B1 corporate family rating (CFR) and its B1 senior unsecured ratings.

"The rating affirmation and outlook change to positive reflect our expectation that the substantial improvement in Tata Motor's credit profile over the past few quarters will sustain over the next 12-18 months," said Moody's Senior Vice President Kaustubh Chaubal.

In a separate development, Tata Motors has expressed interest in the expansion of new green technology project in Jharkhand including manufacturing of hydrogen engine-powered vehicles and electric vehicles.

Senior officials of Tata Motors, Tata Steel and Tata Cummins met Jharkhand Chief Minister Hemant Soren and senior officials to discuss the possibilities of investment in the expansion of a new green technology project at Jamshedpur.

Cummins Inc and Tata Motors had in November 2022 joined hands to offer solutions in hydrogen-powered commercial vehicle space. The development is likely to impact the stock in today's trade.

On May 12 this year, the company reported a consolidated net profit of Rs 5,408 crore in Q4 compared with a loss of Rs 1,033 crore in the year-ago period. On a sequential basis, Tata Motors reported a second consecutive quarterly profit, helped by price hikes and strong demand for cars in its luxury Jaguar Land Rover (JLR) stable as well as for commercial trucks.

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