A stark contrast to its previous year’s performance, Tata Motors has begun the year 2021 on a very high note. Along with most popular launch of iconic SUV, Safari, there are a number of driving factors that have led to this upsurge and we take a look at all the reasons behind this skyrocket in the stock charts.
Last year, automotive businesses all around the world were adversely hit due to the sudden onslaught of coronavirus pandemic. January 11 financial report released by Jaguar Land Rover showed that Tata Motors was no exception to this. However, the company is on a steady path to recovery as its recent share market performance has achieved stats that are on a new one year high. With recent events, it is safe to say that the multinational automotive company has steadied its foothold, enriched its corporate attitude and gained an upward momentum.
Tata Motors stock has made a massive 264% gain on its 2020 decline. The steep rise might have something to do with Jaguar’s stable performance in its Chinese market as well as progressive recovery helping the company gain trust and build better rep in the stock market. This is also the reason for the company hitting a 52 week high and shares jumping as much as 10% in a single day and almost 23% in the last five days. Though the sale recovery figures come from a subsidiary company of Tata Motors, the share market has viewed it as the conglomerate’s success in bouncing back after the 2020 hit to its business.
With its previous day close at INR 237, the current day range had a low of INR 238 while the maximum range stood at INR 248. Now that Tata Motors’ shares have hit the INR 240 mark its momentum is expected to face some resistance for a while, if the company overcomes this period the rest of the time will most likely be a smooth sail. In 2020, both Tata Motors and its subsidiary Jaguar Land Rover had made sales that were exceedingly lower than the preceding year, JLR sold only 425,974 vehicles- almost 23% decrease in sales as compared to 2019. In 2021, auto makers have recuperated with rising sales figures that reflect their optimism for the new year and improved business models. Steady rise in sales and new models on the way have ensured that Tata Motors’ shares will be much well-received than last year.
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