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Tata Motors Survive Amid Uncertain Monday Trade

Monday’s stock market was full of ups and downs and it would not be wrong to say that the whole day bent towards low trade.

Though there was instability, Tata Motors was announced as gainer for Monday’s trade. It rose by 4.9% which amounted to Rs 169. There is reason for it as on the same day, the company launched the novel model of Nano.

The new model promises to deliver better services and also has increased fuel efficiency and would also boast of complete new looks which were not present in old models, but it would be sold at the same price.

It is not that Tata did not witness loss in share market. It declined by 11.36% but despite that, it managed to register growth. As per reports by brokerage firm Kotak, there is no doubt that there has been growth and main credit of it should go to the novel model of Nano, but it should be noted that there are places where it needs improvement.

First of all, the company is too lenient on operating profit front and this is the main reason for decline in the sale of domestic business. In addition, various factors like high discounts, increased market investment and negligible presence in the passenger car segment are also some of the many reasons for the decline.

Jaguar Land Rover has shown great sales in market and it has made the company earn a fat amount. TO tell in details then its profit after tax is £1 billion. Profit could have increased if forex losses would not have been there.

Officials were of the view that it is a luxury drive and is doing exceptionally well in China and Russia but as said, it is a complete luxury drive so its sales have found to be declining in developing countries by 2%.