Tata Motors shares slump 13% on Brexit jitters

By: | Updated: June 24, 2016 5:09 PM

Tata Motors shares plunged as much as 13 per cent in the early trade on Friday after UK refererandum showed 'Leave' camp ahead in 'Brexit' vote.

tata motors bse sensex nse niftyTata Motors shares plunged as much as 13 per cent in the early trade on Friday after UK refererandum showed ‘Leave’ camp ahead in ‘Brexit’ vote.

Tata Motors shares plunged as much as 13 per cent in the early trade on Friday after UK refererandum showed ‘Leave’ camp ahead in ‘Brexit’ vote.

At 9.27 am, shares of Tata Motors were trading 8.39 per cent down at Rs 447.05. The scrip opend the day at Rs 439.20 and has touhced a high and low of Rs 453.45 and Rs 425, respectively, in trade so far. Later, the scrip settled the day 7.99 per cent down at Rs 449.

Also Read: Sensex slumps over 900 points in early trade

Tata Motors generates majority of its revenue from its British luxury car unit Jaguar Land Rover. According to company’s website, Jaguar Land Rover contributed 83.2 per cent of the company’s total automotive revenue in 2014-15 compared to 82.2 per cent in 2013-14.

Nirdosh Gaur, managing director and chief executive officer, Moneypalm said, “Companies which have major exposure to EU will get impacted from Brexit due to currency fluctuations.”

Tata Motors’ subsidiary — Jaguar Land Rover (JLR) has also started recalling more than 11,000 vehicles in China due to faulty crankshaft sensors. The recall affects 6,067 imported Land Rover Discovery 4 SUVs manufactured between April 2012 and October 2012. Apart from that, 5,214 imported Range Rover models produced between April 2012 and October 2012; and one New Range Rover car made on May 9, 2012 will be recalled. Faulty crankshaft position sensors may cause the engine to stall when driving.

Since the beginning of the ongoing calendar year, shares of Tata Motors rallied 21.50 per cent to Rs 488 on June 23 from Rs 401.65 on January 1. On the other hand, Sensex gained 3.22 per cent during the same period.

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