Tata Motors shares drop 6% on bourses amid China jitters

According to market analysts, the downtrend in the stock is largely amid worries over a slowing growth in the world's 2nd largest economy

Tata Motors shares today tanked over 6 per cent amid growing concerns over the Chinese economy.

Tata Motors scrip today opened at Rs 356.50 and fell to an intra-day low of Rs 338.40 on BSE.

The stock finally settled for the day at Rs 343.20, down 6.15 per cent on BSE.

On NSE, the stock opened at Rs 356.25 and touched an intra-day low of Rs 338.10, down 7.59 per cent.

The scrip closed at Rs 343.55, down 6.10 per cent on NSE.

According to market analysts, the downtrend in the stock was largely amid worries over a slowing growth in the world's second-largest economy. China is one of the biggest market for its luxury brand JLR.

Moreover, since China depreciated its currency, it could make JLR products costlier there.

China's central bank today lowered the yuan against the US dollar by 0.51 per cent to 6.5646, the lowest since March 2011.

Marketmen further said that sentiment got dampened after global crude prices softened to multi-year lows following China's weakening currency and rising global stock reserve.

Meanwhile, the US benchmark crude contract slid below USD 34 a barrel, while Brent fell to USD 33.61 per barrel.