Investors hammer down six Tata group co stocks

Tata Motors saw a 6% decline, after Jaguar Land Rover announced a pause in shipments to the US in response to automobile import tariffs
| Photo Credit:
REUTERS

Six Tata Group companies part of the Nifty index were hammered down on Monday amid fears that these would be the worst hit in the ongoing trade war triggered 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 capitalisation.

The retail arm of the Tata Group, Trent, emerged as the biggest loser on the index, with its shares plunging 15 per cent to ₹4,741 following a disappointing March quarter business update by the company. Incidentally, it was the steepest single-day drop by the company since March 2020.

Although revenue rose 28 per cent year-on-year to ₹4,334 crore from ₹3,381 crore, the figure fell short of expectations and trailed the company’s five-year compound annual growth rate of 36 per cent. Trent is now trading nearly 43 per cent below its 52-week high.

JLR and TCS

Tata Motors saw a 6 per cent decline, to ₹580, after its subsidiary, Jaguar Land Rover, announced a pause in shipments to the US in response to the automobile import tariffs. The move sparked concerns about future export disruptions and margin pressures.

Tata Steel dipped 8 per cent to ₹130 as metal stocks took a hit across the board. Investor sentiment weakened after the US imposed a 25 per cent tariff on steel and aluminium imports earlier in March. While metals were not part of the latest round of reciprocal tariffs, investors remained cautious about the broader implications of an escalating trade war.

Shares of TCS plunged at the start of trading to hit a 52-week low of ₹3,060 a piece but recovered to close down marginally by 1 per cent at ₹3,277 on growing fears of a US recession.

Titan company was down 2 per cent to ₹3,024 and Tata Consumer Products by 4 per cent (₹1,047) as concerns over consumption demand and overall market weakness weighed heavily on the stocks.

Ashutosh Tiwari, MD and Head Institutional Equities, Equirus Capital, said the uncertainties around global trade and growth are likely to keep global markets including India choppy in the near term.

Despite the fall in IT stocks, they are still trading at one year forward P/E valuations, which are 15 per cent higher than pre-COVID levels and hence investors should be underweight IT, he said.

Published on April 7, 2025