Stock Market LIVE: Sensex, Nifty opens lower today! Nifty below 22,050, Sensex near 72,450; Media and Pharma stocks

JM Financial maintains a BUY rating on Tata Motors with a March 2025 sum-of-the-parts (SOTP) valuation of Rs 1,200, valuing the standalone business and JLR at 12x and 3.0x EV/EBITDA respectively. However, the report highlights the slowdown in key global markets as a point of monitoring.

According to a report by JM Financials on Tata Motors, in the fourth quarter of FY24, Jaguar Land Rover (JLR) reported an EBITDA of 16.3%, marking a 170 basis points year-on-year improvement driven by higher operating leverage and lower raw material costs.

Meanwhile, the India business, including commercial vehicles (CV) and passenger vehicles (PV), achieved an EBITDA of 10.5%, surpassing JM Financials’ expectations by 50 basis points. Supply normalization aided JLR in reducing its order backlog to approximately 133,000 units.

Although the US market remains robust, the demand environment in the EU has slowed down. Management plans to increase marketing spends to boost JLR’s order book. For FY25, the EBIT margin is anticipated to remain flat.

The company expects strong free cash flow generation to support investments in JLR’s electrification efforts, aiming to achieve a net cash position by FY25 (£0.7bn currently).

In the domestic PV segment, growth is expected to be driven by new launches and capacity ramp-up. Additionally, domestic CV demand is forecasted to pick up from the second quarter. Improving margins in both domestic CV and PV segments are viewed positively, with the net cash position in the Indian auto business providing comfort.

In Wednesday’s trading session, shares of car maker Tata Motors experienced a sharp decline of 7% during the opening trade after the management expects slower growth in FY25. The share price of Tata Motors fell by 8.26% to reach an intraday low of Rs 960.10 on the NSE.

The Volatility Index surged by 11% to reach 20.65, reflecting heightened market uncertainty and increased price fluctuations.

As Phase 4 of election is underway, markets seeing some election jitters.

For the week ending May 12, markets ended lower, Nifty down nearly 3% on a weekly basis.

Aarti Pharmalabs, Aditya Birla Capital, Alembic, Bombay Burmah Trading Corp, BLS E-Services, Cera Sanitaryware, Chalet Hotels, DLF, Ethos, Electrosteel Castings, GIC Housing Finance, INOX India, Jindal Steel and Power, C.E. Info Systems, Sanofi India, Tube Investments of India, UPL, Varun Beverages, Zomato.

The NSE has added Balrampur Chini Mills, Canara Bank, GMR Infra, Hindustan Copper, Vodafone Idea, PNB, Sail, and Zee Entertainment Enterprise in F&O on May 13, 2024.

Foreign institutional investors (FII) offloaded shares worth net Rs 2,117.5 crore, while domestic institutional investors (DII) mopped shares worth net Rs 2,709.8 crore on May 10, 2024, according to the provisional data available on the NSE.

WTI crude prices are currently trading at $78.07, representing a decrease of 0.17%, while Brent crude prices stand at $82.52, indicating a decline of 0.32%, as of Monday morning.

The US Dollar Index (DXY), gauging the dollar’s value against a basket of six foreign currencies, recorded a 0.04% increase, trading at 105.34.

According to Reuters, U.S. stocks saw slight gains on Friday, contributing to another weekly advance across all three indexes. Investors scrutinized statements from Federal Reserve officials and anticipated crucial inflation data for the following week. The tech-focused Nasdaq Composite closed marginally lower, shedding just 5.39 points or 0.03% to reach 16,340.87. Meanwhile, the S&P 500 edged up by 8.60 points or 0.16% to finish at 5,222.68, and the Dow Jones Industrial Average saw a rise of 125.08 points or 0.32% to settle at 39,512.84.