Tata Motors DVR dips in discounting market mechanism

Trading stocks is simple mathematics 2+2= 4 but our greed makes it 5 and our panic makes it 3, and this proverb is currently most suitable for the shares of Tata Motors DVR. The shares of the company on Monday, on an intra-day basis have plunged by over 4 per cent. The share is the major loser for the day as at 12.19 pm.

Indian Capital markets today opened on the weaker side due to the global clues, as the major event FED rate meet, is quite detrimental this week. Sensex is down by a whopping 316 points as at 12.27 pm and Nifty is down by 93 points.

On June 6, shares of Tata Motors and Tata Motors DVR (differential voting rights) had touched their respective 52-week highs on the BSE in an intra-day trade as the company’s retail sales in May had risen drastically, majorly due to strong performance of its British arm JLR and robust volume growth of its heavy and medium commercial vehicles.

The results of the company have been impressive in Q4FY16. The company has posted a three-fold rise in its consolidated net profit at Rs 5,177.06 crore for the fourth quarter ended March 31. Consolidated net sales in the fourth quarter of current fiscal are up 18.76 percent at Rs 79,926.12 crore, as against Rs 67,297.99 crore in the year-ago period.

The share is the major loser as the investors have prefered to be risk averse since the major event of BREXIT is round the corner. The UK citizens will vote on the referendum on June 23 which will decide whether the UK remains the part of European Union.

The EU has 28 members that operate as one 500-million-person-strong market. The roots of the union date back to a duty-free trade zone established after World War II to help heal the wounded continent. The EU has bolstered trade and made agreements with other nations and blocs easier to negotiate.