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Tata Motors shares slip 2% after CLSA cuts target price

Tata Motors shares slip 2% after CLSA cuts target price

Tata Motors stock touched an intraday low of Rs 488.10, down 1.87% against the previous close of Rs 497.45 on BSE.

 The share has gained 156% in one year and risen 1.8% since the beginning of this year The share has gained 156% in one year and risen 1.8% since the beginning of this year

Tata Motors shares fell nearly 2% amid a rising market today after brokerage CLSA  assigned a sell rating to the Tata Group firm. Tata Motors stock touched an intraday low of Rs 488.10, down 1.87% against the previous close of  Rs 497.45 on BSE.

The share opened at Rs 496.65. The large cap stock has fallen after 2 days of consecutive gain. Tata Motors stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 156% in one year and risen 1.8% since the beginning of this year.

Market cap of the firm fell to Rs 1.63 lakh crore on BSE. Total 4.53 lakh shares changed hands amounting to a turnover of Rs 22.28 crore. The share hit a 52-week high of Rs 536.50  on November 17 , 2021 and a 52-week low of Rs 185.05 on January 5, 2021.

CLSA has reduced its target price to Rs 408 against the earlier Rs 450. The firm's domestic passenger vehicle business is overvalued while subsidiary JLR lags in electrification, said the brokerage. However, JLR's volume and profitability are expected to recover as supply situation eases for chips, it added.

CLSA's sell call comes a day after the Tata Group firm reported a firm reported a 50 percent rise in passenger vehicle sales in December 2021.The company sold 35,299 units last month against 23,545 units in December 2020.

 In the second quarter of the current fiscal, Tata Motors reported a consolidated net loss of Rs 4,441.57 crore against a net loss of Rs 314.45 crore in the year-ago quarter.

However, net revenue climbed 14.7 per cent to Rs 61,379 crore during the quarter.

Meanwhile, Sensex was trading 229 points higher at 59,413 and Nifty rose 60 points to 17,685 despite a spike in Covid-19 cases. Benchmark indices were trading higher for the second straight session in 2022.

On Monday, Sensex ended 929 points higher at 59,183 and Nifty rallied 271 points to 17,625 in the first trading session of 2022.