Shares of Tata Motors Ltd (TML) fell 5 per cent in intraday trade on the Bombay Stock Exchange (BSE) on Tuesday as Brexit deal faced fresh barrier from the British Parliament.
Reacting to the news, Tata Motors share price declined as much as 5.01 per cent to touch an intraday low of Rs 129.85 apiece on the BSE after making a negative opening at Rs 133.40. Paring some of losses, the stock was trading 2.85 per cent lower at Rs 132.80.
On the National Stock Exchange, Tata Motors share was quoting at Rs 133.50 apiece, down 2.45 per cent as compared to previous closing price of Rs 136.85. The stock opened lower at Rs 133.35 and touched an intraday low of Rs 129.80.
In the last four trading sessions, Tata Motors share gained over 8 per cent after report suggested that the UK and European Union had agreed to a new Brexit deal.
The stock has been under pressure since September 27 after the firm announced its subsidiary Jaguar Land Rover (JLR) would suspend production at UK plants for one week from November 4 to adjust to adverse market conditions, including uncertainty over Brexit. Tata Motors-owned automaker has three manufacturing plants in the UK at Halewood, Solihull and Castle Bromwich.
As per the company's Annual Report 2018-19, JLR contributes nearly 74 per cent to the Tata Motors Group revenue.
In the first quarter of current fiscal, Tata Motors reported a consolidated net loss of Rs 3,679.66 crore dented by muted volume growth in domestic business as well as in its British arm Jaguar Land Rover (JLR). The company said profit was impacted by demand slowdown, higher axle loads, liquidity stress, low freight availability for cargo operators. Consolidated revenue declined by 7.84 per cent to Rs 61,467 crore as compared to Rs 67,701 crore in the year-ago period.
Edited by Chitranjan Kumar