Tata Motors saw a decrease of 6%, after Jaguar Land Rover announced a break in shipments to the US in response to the import tariffs of cars | Photocredit: Reuters
Six Tata Group companies part of the Nifty index were hammered on Monday from the fear that this would have been the worst hit in the current trade war caused by US President Donald Trump.
Tata Consultancy Services, Tata Steel, Tata Motors, Titan Company, Tata Consumer Products and Trent saw a combined erosion of £ 1,28 Lakh Crore in market capitalization.
The retail arm of the Tata Group, Trent, emerged as the biggest loser in the index, with its shares that fell 15 percent to £ 4,741 after a disappointing company update of March quarter by the company. Incidentally, it was the steepest fall from one day by the company since March 2020.
Although the turnover on an annual basis increased by 28 percent to £ 4,334 crore of £ 3,381 Crore, the figure did not fall due to expectations and the five -year -old annual growth rate of the company of 36 percent followed. Trent now acts almost 43 percent under 52 weeks high.
JLR and TCS
Tata Motors saw a decrease from 6 percent to £ 580, after his subsidiary, Jaguar Land Rover, announced a break in shipments to the US in response to the input rates for the car. The movement led to concern about future export disturbances and margin pressure.
Tata Steel fell by 8 percent to £ 130 while metal shares hit the whole of the line. Investor sentiment weakened after the US had previously imposed a rate of 25 percent in steel and aluminum imports in March. Although metals were not part of the final round of mutual rates, investors remained careful about the broader implications of an escalating trade war.
Shares of TCS fell at the start of the trade to hit a low of 52 weeks of £ 3,060 each, but recovered to close marginal by 1 percent at £ 3,277 about the growing fears for an American recession.
Titan Company fell by 2 percent to £ 3,024 and Tata Consumer Products by 4 percent (£ 1,047) as concern about the demand for consumption and the total market weakness weighed heavily on the shares.
Ashutosh Tiwari, MD and main institutional shares, Equirus Capital, said that the uncertainties around global trade and growth will probably keep the global markets, including India turbulent in the short term.
Despite the fall in IT shares, they are still being traded by a year in advance p/e valuations, which are 15 percent higher than pre-known levels and therefore investors must be underweight, he said.
Published on April 7, 2025
