Experts say that after Corona, the overseas business of Tata Motors in Europe and America is expected to increase in FY 2022 and FY 2023. Therefore, the stock should be bought and kept for one to two years.
Veteran investor Rakesh Jhunjhunwala | Twitter
New Delhi: Shares of Tata Group, which is included in the portfolio of stock market veteran Rakesh Jhunjhunwala, have registered a rise of more than 2 percent in early trade on Thursday. Shares of Tata Group's Tata Mortus opened with a gain of about Rs 7.50 per share on Thursday morning and rose steadily to reach a price of around Rs 511.50 per share. This is his biggest high in a single trading session. Market experts are currently advising to invest in Tata Group shares after the boom.
The price of Tata Mortus shares increased like this
According to stock market experts, the biggest reason behind the jump in Tata Motors shares is Jaguar Land Rover's multi-year strategic partnership with NVIDIA to provide next-generation automated driving systems to customers. He said the auto major's stock may give fresh breakout at Rs 520 level and hit Rs 540 level in near term.
Shares of Tata Motors will remain strong for the next two years
Market experts say Tata Motors shares are rising due to short-term perceptions of Jaguar Land Rover's multi-year strategic partnership with NVIDIA. However, the overall trend for Tata Motors stock is positive as the market is positive on auto sector stocks. Since, Tata Motors is a Tata Group company, which is a cash-rich conglomerate. The GDP growth is expected to boost the sales of its commercial vehicles, which will increase its business volume. In addition, the global economy is returning to its normalcy. After Corona, Tata Motors' overseas business in Europe and America is expected to increase in FY 2022 and FY 2023. Therefore, the stock should be bought and held for one to two years.
Investors keep buying medium term stocks
Not only this, market experts are advising to buy and keep the shares of Tata Motors with them. After giving a breakout above Rs 520, the share of Tata Motors can go up to Rs 590 in the medium term after giving a breakout above Rs 520. However, market experts are also advising to be cautious after reaching the level of Rs 494.
Rakesh Jhunjhunwala's stake in Tata Motors
As per the shareholding pattern of Tata Motors for the October to December 2021 quarter, Rakesh Jhunjhunwala holds 3,92,50,000 shares or 1.18 per cent stake in the company. Apart from this, there are many such companies in the country, whose shares are owned by veteran investor Rakesh Jhunjhunwala.