Tata Motors shares continued its weakness on Thursday, extending its red streak for the 10th straight session.
What Happened: Tata Motors shares have been struggling in September—first the company's August sales missed analysts' estimates. The total sales declined by 8% to 71,693 units from 78,010 units in the previous year.
Adding fuel to the fire was UBS's sell call on the stock and a target price of ₹825 indicating a downside of 20%. The brokerage maintained their bearish views after Tata Motors offered higher discounts on Range Rover Sport of Jaguar Land Rover.
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The brokerage expects a further increase in discounts due to increased disruptions in aluminium supply due to flooding, which could affect near-term deliveries.
Things are not rosy for the auto giant on technical charts either as analysts expect further weakness for the stock. Analysts said the stock's market sentiment has shifted due to a shift in the technical charts. One analyst sees the stock falling to ₹921 level.
Price Action: Tata Motors stock have nosedived 16% from its all time high of ₹1179. Shares of Tata Motors fell 0.62% to ₹970.25 on Thursday.
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