Tata Motors Share Price: Why TaMo Stock Price Rose 4% - Here's What Fueling The Rally

Shares of Tata Motors surged 3.50% on Friday to Rs 707 on the NSE, buoyed by investor optimism following the announcement of a landmark trade agreement between the United States and the United Kingdom. The deal, which significantly lowers tariffs on British car exports to the US, is expected to benefit Tata Motors’ UK-based luxury subsidiary, Jaguar Land Rover (JLR).

British Prime Minister Keir Starmer revealed the details of the trade pact at JLR’s Solihull facility—a symbolic venue that highlights the deal’s importance to the UK automotive sector. Under the new arrangement, tariffs on up to 100,000 UK-manufactured vehicles entering the US will be reduced from 27.5% to 10%—a major advantage for JLR, which derives roughly 20% of its revenue from the American market.

The stock market responded swiftly, with Tata Motors extending its rally for a third straight session. Analysts attributed the upward movement to expectations of improved export margins and increased competitiveness for JLR in the critical US market.

Also Read: Wall Street Cheers As Trump Agrees To US-UK Trade Deal | Republic World

Tata Motors' Share Price History

Over the past year, Tata Motors’ share price has seen significant fluctuation, hitting a 52-week low of Rs 535.75 and reaching an all-time high of ₹1,179.00 on July 29, 2024. Over a three-year horizon, the company has delivered a robust return of approximately 69%, significantly outperforming the Nifty 100 index, which posted a gain of around 49% during the same period.

On the technical front, the stock is trading above its 50-day simple moving average (SMA) of Rs 653.8 but remains below its 200-day SMA of Rs 823.7, indicating a mixed yet cautiously optimistic outlook.

Indo-UK FTA Adds Further Momentum

Adding to the tailwinds, Tata Motors is also expected to benefit from the recently concluded India-UK Free Trade Agreement. Finalized earlier this month, the FTA eliminates tariffs on the majority of Indian exports to the UK, opening up new opportunities for Indian automakers and component suppliers.

With a market capitalization now exceeding Rs 2.5 trillion, Tata Motors appears well-positioned to take advantage of these favorable global trade developments. Investors will be closely watching how the company leverages these strategic agreements to strengthen its international presence—particularly in the premium automotive segment.