Tata Motors Share Price: What Drove TaMo's 5% Surge In Stock Price Today On BSE Sensex?

Tata Motors Share Price Today: Tata Motors has recently emerged as one of the top-performing stocks on the BSE Sensex , gaining significant attention with a rise of nearly 5%, trading at Rs 678.25, up by Rs 30.45.

This surge in Tata Motors' share price can be attributed to several key developments, making the stock an attractive option for investors.

Shareholder Approval for Demerger

Tata Motors received overwhelming approval from its shareholders for a proposal to demerge its commercial vehicle (CV) business into a separate, listed entity.

The approval came with an impressive 99.99% vote in favour, signalling confidence from investors in the company's restructuring plans.

This move, first announced in March 2024, aims to unlock value by allowing the commercial vehicle and passenger vehicle businesses to operate independently, each focusing on its respective markets.

Improved Valuation Prospects

The demerger is expected to improve the valuation of both Tata Motors' commercial vehicle division and its passenger vehicle business, which includes the luxury car brand Jaguar Land Rover (JLR).

The market's positive reaction to the demerger has led to a sharp rise in Tata Motors' stock price, reflecting investor optimism about the company’s future growth prospects.

Also Read: Commercial Vehicle Sales Likely to See Modest Growth in FY26: Axis Securities

Boost from India-UK Free Trade Agreement

Another significant factor contributing to the rise of Tata Motors' stock is the recent India-UK Free Trade Agreement, which is expected to benefit the automotive sector.

Under this agreement, import tariffs on automobiles will be reduced from over 100% to just 10% for certain vehicles.

This change could have a positive impact on Tata Motors' UK-based subsidiary, Jaguar Land Rover, by reducing the cost of importing vehicles into India, thus boosting JLR's sales in the Indian market.

Strong Market Sentiment

Tata Motors’ performance is also supported by the positive market sentiment surrounding the company, with its strong presence in both the commercial and passenger vehicle segments.

The company’s diverse portfolio, which includes vehicles for both domestic and international markets, adds to its appeal as an investment.