Tata Motors nears four-month lows, stock falls 6%

The stock has underperformed the market, by falling 10% in the past six trading sessions; compared to 5% drop in the auto index.

Tata Motors has dipped almost 6% to Rs 270, also its lowest price since December 4, 2012, on the back of heavy volumes on the bourses. 

The stock opened at Rs 285 on BSE and has seen a combined 4.51 million shares changing hands on the counter till 1017 on BSE and NSE against an averge around 9 million shares that were traded daily in past two weeks.

According to Reuters report, the commercial vehicle maker is planning to raise Rs 300 crore ($55.13 million) through 26-month bonds at 9.15%.

The bonds are rated AA by Care rating agency, and Yes Bank is the sole arranger to the bond sale, added report.

Meanwhile, the auto stock has underperformed the market, by falling 10% in the past six trading sessions after its key Jaguar Land Rover (JLR) unit posted lower-than-expected growth of around 3% year-on-year (yoy) in retail volumes during February mainly due to a sharp decline in volumes in China. The benchmark Sensex has fallen 2.45%, while auto sector dipped 5% during the same period.