shares fell 1.32 per cent to ₹672.65 on Wednesday as investors weighed mixed signals from the automotive sector amid speculation about potential cuts.
Jefferies maintained its underperform rating on Tata Motors while raising the target price to ₹575 from ₹550. The brokerage expects a potential GST reduction to boost auto demand, particularly in two-wheelers and small passenger vehicles, though it projects Tata Motors and to deliver the highest earnings growth with 19 per cent and 27 per cent compound annual growth rates respectively for FY25-28.
Market data showed Tata Motors trading between ₹667.80 and ₹679.90, with heavy sell pressure as sell quantity exceeded buy quantity at 7.70 lakh shares versus 6.48 lakh shares. The stock recorded a traded volume of 46.87 lakh shares worth ₹315.41 crore.
Elara Securities’ dealer checks during Ganesh Chaturthi revealed subdued auto sales with low single-digit growth in two-wheelers year-on-year. Many customers postponed purchases hoping for GST cuts, particularly affecting big-ticket passenger vehicle buyers who are more sensitive to tax changes.
The mixed sentiment reflects broader uncertainty in the auto sector as consumers await clarity on potential policy changes while dealers report steady rural buying where GST impact awareness remains low.