The auto major's scrip tanked 4.55 per cent to close the day at Rs 360.60 on the BSE. In intra-day, the stock declined 4.88 per cent to Rs 359.35.
At the NSE, the stock dived 4.69 per cent to settle at Rs 360.10.
The scrip was the top loser on both Nifty and Sensex.
According to media reports, the capital expenditure at Jaguar Land Rover (JLR) will be increased to 3.5-3.7 billion pounds in the fiscal year ending March 2015, higher than its proposed capex of 2.75 billion pounds in the financial year ending March 2014.
It further added that the company intends to continue its investment plans towards new product development, new power trains and technologies to meet regulatory requirements, capacity expansion at existing UK facilities and setting up of new plants in China and Brazil.
"While increased thrust on R&D, new product development and capacity expansion is essential for JLR to sustain its strong growth momentum and is expected to be positive in the long run; we believe that in the near-term it will strain the company's cash flows," Angel Broking said in a report.
"Going ahead, we expect headwinds in the standalone business to continue in FY2014 due to weak macro-economic environment, which is expected to continue impacting the domestic volumes," the report added.