Tata Motors share price continued to rise for the third consecutive session on Friday, increasing by as much as 3.5% to touch an intraday high of ₹704 on the BSE, driven by positive outlooks related to the India-UK trade agreement.
Analysts believe that a series of significant catalysts has propelled Tata Motors share price upward, including the potential benefits of the India-UK FTA for Jaguar Land Rover (JLR), excitement around the UK-US trade agreement, robust Q4 sales for JLR, and the demerger plan viewed as a way to unlock value.
A significant Free Trade Agreement between India and the UK was announced this week, generating optimism for a more advantageous export environment for JLR. The agreement is anticipated to reduce import tariffs on vehicles from 100% to 10% under a quota system, which could enhance JLR’s sales in India and improve its competitive position.
JLR’s total sales for Q4FY25 increased by 6.7% compared to the previous quarter and by 1.1% year-over-year, despite ongoing challenges in China.
Additionally, Tata Motors recently announced a plan to strategically split its operations into two publicly traded companies: one for the Commercial Vehicles (CV) sector and another for the Passenger Vehicles (PV), electric vehicles (EV), and JLR divisions. This demerger initiative is intended to sharpen operational focus, promote agility, and create long-term shareholder value—a strategy that has received widespread support from analysts and investors.
What’s the way ahead for this auto stock?
Tata Motors share price opened at an intraday low of ₹662.60 apiece on the BSE, the auto stock touched an intraday high of ₹706.45 per share. Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said that following its recent underperformance, this frontline stock is now displaying early signs of a turnaround.
Tata Motors share prices have established a base near the 200-week simple moving average, indicating a potential reversal. Additionally, a bullish breakout is visible on the daily chart.
“We anticipate a near-term rebound in the stock, with the expectation that it will show relative resilience amid the ongoing India-Pakistan geopolitical tensions. A strong base is observed around the ₹600 mark, while the 200-day SMA near ₹820 could serve as the next target,” added Bhosale.
Further, Anshul Jain, Head of Research at Lakshmishree Investments explained that Tata Motors share price is rebounding from a confluence of support formed by the 10, 20, and 50-day EMAs, with an open-low formation signaling bullish intent. The auto stock is now headed toward the weekly swing high of ₹723.05, which will serve as the short-term target.
“Investors can consider accumulating at current levels. A decisive breach above ₹723.05 will act as a propeller, potentially leading to a test of the 50% retracement level of the entire fall at ₹856,” advised Jain.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
