InvestorQ : Why was Tata Motors shares down by 10% today? Is it any connection to the crisis in Yes Bank that Tata Motors is down so sharply?
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Why was Tata Motors shares down by 10% today? Is it any connection to the crisis in Yes Bank that Tata Motors is down so sharply?

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1 year ago
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Shares of Tata Motors slipped 10% on 06 March and it had little to do with what happened at Yes bank. Tata Motors unit (JLR) had announced the reduction in China sales owing to the outbreak of Coronavirus. The impact was expected to reduce Jaguar Land Rover's (JLR) full-year EBIT (earnings before interest and tax) margin by about 1%. The Coronavirus has significantly impacted China sales with February retail sales in China down 85% on a YOY basis. Tata Motors is currently trading at its lowest level since October 2019. In the last one month, Tata Motor underperformed the Nifty by about 28%. JLR expects this to improve in March but retail sales are expected to recover only gradually. The spread of the virus to other markets such as South Korea, Japan, and Italy will also impact sales.

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