Tata Motors Share Price Rallies Over 3% on US-UK Trade Deal Buzz, India-UK FTA Boost

Market Performance

Tata Motors' share price surged over 3% on Thursday, extending its winning streak to a second day. The stock hit an intraday high of ₹704.00 apiece, recording a 3.45% jump on the BSE.

• 2-day gain: 8.6%
• Current price at 10:05 AM: ₹699.95 (up 2.86%)
• Nifty 50 Top Gainer: Tata Motors

This rally highlights rising investor confidence driven by positive geopolitical and strategic corporate developments.

Main News

US-UK Trade Pact in Focus

Market enthusiasm soared after reports suggested a potential trade agreement between the US and the UK. The New York Times indicated an official announcement could be imminent.

Former US President Donald Trump hinted at a significant trade deal via Truth Social, further fueling speculation, although the countries involved were not named.

For Tata Motors, which owns Jaguar Land Rover (JLR), such a deal could be significant, as:

• 20% of JLR’s revenues come from the US market
• JLR had earlier suspended US shipments due to a 25% auto import tariff
• Reports now suggest resumed shipments, though no formal confirmation has been made

India-UK Free Trade Agreement (FTA)

The recently signed India-UK FTA also lifted sentiment around Tata Motors. The deal could unlock new sales opportunities for JLR in the Indian market, potentially enhancing the company’s revenue stream.

Company Details

Tata Motors Demerger Gains Approval

Adding to the positive momentum, Tata Motors shareholders have approved the demerger of the Commercial Vehicle (CV) business into a separate, publicly listed company.

Key Highlights:

• Approval received with near-unanimous support
• Existing Tata Motors shareholders will get one share of the new CV entity for each share held

This move is part of Tata Motors’ ongoing restructuring strategy to improve operational efficiency and market focus.

Summary

The Tata Motors share price has shown strong upward momentum, supported by:

• Optimism over a potential US-UK trade pact
• Strategic advantage from the India-UK FTA
• Positive market response to the CV business demerger

With a two-day gain of 8.6%, Tata Motors continues to attract attention as it navigates global trade developments and internal restructuring efforts.