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MUMBAI: The stock price of Tata Motors rallied over 7% in early trading on Tuesday after the company announced a demerger of its commercial and passenger vehicle businesses. The stock, however, saw some profit-taking later and closed 3.5% higher at Rs 1,022 on the BSE.
The day’s session also saw IIFL Finance’s stock price crash 20% (the maximum possible) after RBI banned it from offering gold loans with immediate effect.The stock closed at Rs 479 on the BSE.
Analysts are mixed on their reaction to Tata Motors’ decision to divide into two.
Analysts at Morgan Stanley and JP Morgan feel that carving out passenger vehicles reflects the company’s confidence that it could sustain itself on a standalone basis. This decision could also lead to better value discovery, analysts at both the brokerages wrote in their notes. UBS and Motilal Oswal Financial Services, are both negative on the stock. They feel all the positives for Tata Motors are fully priced in.
The day’s session also saw IIFL Finance’s stock price crash 20% (the maximum possible) after RBI banned it from offering gold loans with immediate effect.The stock closed at Rs 479 on the BSE.
Analysts are mixed on their reaction to Tata Motors’ decision to divide into two.
Analysts at Morgan Stanley and JP Morgan feel that carving out passenger vehicles reflects the company’s confidence that it could sustain itself on a standalone basis. This decision could also lead to better value discovery, analysts at both the brokerages wrote in their notes. UBS and Motilal Oswal Financial Services, are both negative on the stock. They feel all the positives for Tata Motors are fully priced in.
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