Tata Motors shares rise 2% today. Will the auto stock's rally continue?

Over the past year, Tata Motors has gained 54.05%, and over three years, it has surged by over 170%. The stock's beta over the past year is roughly 1, indicating average volatility during that period.

In Short

• Tata Motors shares rise 2%, still below Rs 1,000 mark
• Stock remains in bearish territory despite recent gains
• Tata Motors up 54% over the past year, 170% in three

Tata Motors shares gained over 2% on Friday after remaining under pressure for several sessions. Shares of the auto major rose 2.06% to Rs 945.10 on the Bombay Stock Exchange (BSE) at around 12:10 pm. While today’s gain suggests a turnaround for the stock, it is trading significantly lower compared to its record-high level of Rs 1,179.05. Moreover, the stock has even struggled to rise above the Rs 1,000 mark, and its recent performance has kept it in bearish territory.

Despite today’s increase, Tata Motors remains in a corrective phase, with its market capitalisation standing at Rs 3.48 lakh crore.

Technical trends

It may be noted that the Tata Motors stock has been a strong performer in the longer term.

Over the past year, Tata Motors has gained 54.05%, and over three years, it has surged by over 170%. The stock's beta over the past year is roughly 1, indicating average volatility during that period.

From a technical standpoint, the stock’s relative strength index (RSI) currently stands at 30.3, suggesting that it is neither overbought nor oversold.

Brokerage views on Tata Motors stock

Brokerage houses have varying opinions on Tata Motors’ future performance. Emkay Global continues to maintain a target price of Rs 1,175, reiterating its “Buy” recommendation.

The firm believes that the correction in Tata Motors' stock price, driven by a downgraded outlook at peer BMW and softness in domestic commercial and passenger vehicles, has been overdone.

Emkay highlighted that Tata Motors’ Jaguar Land Rover (JLR) is less reliant on China compared to BMW, and its overall profitability and debt position remain strong.

On the other hand, UBS has issued a more cautious “Sell” recommendation with a target price of Rs 825.

The global brokerage expressed concerns over the order backlog at JLR, particularly for its Range Rover models, and warned of rising discounts and slower growth, which could hurt financial performance by FY26.

Yes Securities holds a more optimistic view with a price target of Rs 1,240. Overall, Tata Motors remains in a volatile phase, with its future performance depending on both market sentiment and the company’s ability to navigate challenges in the global and domestic auto markets.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)