Blood on Dalal Street! Tata Motors shares bleed over 29% at NSE, experts blame it on Rs 27,000 cr loss; worse to come
On account of Rs 27,000 crore losses incurred by the company in China, the Tata Motors shares have bled very heavily on Friday hitting a low of Rs 129 on NSE and Rs 141.9 on BSE at one point of time before paring some losses. However, the counter is still trading around 19 per cent below its Thursday close at Rs 182.9/stock on BSE and Rs 182.85 at NSE.
Speaking on the tanking of Tata Motors shares, Chandan Taparia, Derivative and Technical Analyst at Motilal Oswal told Zee Business Online, "Tata Motors have incurred around Rs 27,000 crore losses in China. This crash in the counter of Tata Motors is due to this reason." He said that the counter can see some more correction in coming days as the loss is expected to take some more tall on the scrip.
Standing in sync with Motilal Oswal view, Kunal Saragoi, CEO at Equity Rush, told Zee Business, "The close of the Tata Motors shares today is crucial. If it closes below Rs 157 levels, then we can expect some more sell-off into the stock and it may go down up to Rs 135/share level next week." He said that apart from the losses in China market, Tata Motors poor quarterly results are another reason that have fulled this sell-off.
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The Tata Motors shares opened in red zone in the opening bell as the stock witnessed heavy sell off today. The stock is trading around Rs 149 at BSE. The stock had made a high of Rs 164.65/share on Friday at BSE and Rs 141.9 low at the BSE. However, at the NSE the counter made a low of Rs 129/share. At NSE the counter had closed at Rs 182.85 per share levels on Thusday.