Tata Motors' loss leads to cascading of Indian stock markets

by   |  VIEW 361

Tata Motors' loss leads to cascading of Indian stock markets

On Thursday, 25th July, the Indian stock markets looked like they had shrugged past the previous five days' crash. However, at their close, the markets overturned their initial gains and continued their bearish sluggishness.

The National Stock Exchange (NSE) that is based out of the country capital, New Delhi fell by around 0.17 per cent to end the day at 11,252.15 while the Bombay Stock Exchange (BSE), India's benchmark stock market closed at 37,830.98, losing around 0.04 per cent.

The reasons for the downward sliding of the stock markets were the drop in the shares of Tata Motors and Reliance Industries Limited (RIL). The former conglomerate lost around 4.6 per cent of its share value after announcing it had posted a net loss in the second quarter ended June 2019.

Lack of demand both in India and in China (especially for the company's Jaguar Land Rovers) led to the slump in the company's activity. According to Tata Motors, it posted a net loss of around $53.28 billion (Rs 3680 crores) for the second quarter of the year.

This, in comparison to the same quarter in 2018, was an increase of about 50 per cent. For the quarter ended June 2018, Tata Motors' net loss was around $27 billion (Rs1,863 crore). The company also announced its net revenue for the June 2019 quarter had dipped by as much as seven per cent. RIL posted a loss of about 2.2 per cent in its share valuation to end the day.