Decline in shares of Tata Motors: Impact of demerger and challenges of JLR. Money Live | Tata Motors shares fall on demerger and JLR challenges

There has been a continuous decline in the shares of Tata Motors since last week. This downward trend started just before the record date of the company’s big demerger—October 14. Tata Motors is trading at around ₹675 with a fall of ₹40. After demerger, the company will be divided into two separate entities – Passenger Vehicle and Commercial Vehicle Units. However, earlier on the news of demerger, the share had also increased by 7-8%. But now investors are confused about restructuring, which is leading to profit booking. Also, the weak results of the company’s UK-based unit Jaguar Land Rover (JLR) have also put pressure on the share. JLR’s quarterly volume was affected due to a cyber attack. Exports have been affected due to the closure of old models and increase in American tariffs. However, movement in the market is expected once again around the record date of October 14.