Tata Motors PV Faces Market Pressure Ahead of Sensex Exit
In a surprising market movement, Tata Motors Passenger Vehicles Limited witnessed a significant intraday decline of 1.5% on Monday, November 24, contrasting with the overall positive sentiment in the market. The stock opened flat at ₹362.25 on the BSE before dropping to an intraday low of ₹356.65 around 11:25 am, when it was trading 1.40% down at ₹357.20.
This downward movement occurred despite the equity benchmark Sensex showing positive momentum, trading 0.14% higher at 85,349 during the same period. The decline comes shortly after the official announcement made on Friday, November 21, regarding the company's upcoming exit from the Sensex index.
Sensex Reconstitution: Tata Motors PV Out, IndiGo In
The Bombay Stock Exchange confirmed that Tata Motors Passenger Vehicles will be removed from the Sensex index constituents as part of the periodic reconstitution exercise. This significant change becomes effective from December 22, 2025, marking the end of an era for the Tata Group company in the premier index.
Simultaneously, InterGlobe Aviation, operating as IndiGo Airlines, will join the Sensex roster, reflecting the evolving composition of India's benchmark index and the growing importance of the aviation sector in the country's economic landscape.
Mixed Q2 Performance with Demerger Impact
The recent quarterly results presented a complex picture for Tata Motors PV. The company, which now encompasses the passenger vehicle, electric vehicle, and Jaguar Land Rover businesses following the recent demerger, reported a spectacular 25-fold surge in consolidated net profit at ₹76,248 crore for the second quarter.
However, this extraordinary performance was primarily driven by a one-time gain of ₹82,616 crore related to the demerger of the commercial vehicles unit. When excluding this exceptional item, the company actually reported a loss of ₹6,368 crore, largely attributed to a steep decline in JLR volumes that negatively impacted overall performance.
Expert Views: Long-term Growth Prospects Remain Strong
Despite the recent stock price decline and mixed quarterly results, market experts maintain a positive outlook on Tata Motors PV's future prospects. The strategic demerger into two separate entities—Tata Motors Ltd for commercial vehicles and Tata Motors Passenger Vehicles—is viewed as a move designed to unlock shareholder value, enhance operational efficiency, and drive focused growth.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, emphasized that Tata Motors PV is positioned for substantial expansion, with ambitious plans to exceed market growth rates, improve EBITDA margins, and strengthen its technology and brand leadership.
"Tata Motors PV's electric vehicle segment is gaining remarkable momentum, commanding a dominant 70% market share in India," Srivastava noted. "The company is preparing to launch new models including the Avinya range and Harrier EV, while JLR's 'Reimagine' strategy focuses on establishing the brand as a leading premium EV manufacturer."
The analyst further added that despite the mixed Q2 FY26 performance, the company's long-term prospects appear promising, driven by JLR's recovery, domestic market growth, and EV expansion. The demerger has provided much-needed clarity, enabling focused strategies for both JLR and domestic businesses.
Technical Analysis Suggests Potential Rebound
From a technical perspective, market experts indicate that the stock might be oversold and could see a bounce back. Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, observed that at the current juncture, Tata Motors PV appears significantly oversold and is trading near its earlier breakout zone of ₹350–355.
This price range has historically acted as a strong demand area, suggesting potential support. The price action indicates that the stock may attempt to stabilize within the ₹350–360 range over the next few sessions as buyers gradually re-enter the market.
"If the stock manages to hold this support area convincingly, a short-term rebound towards ₹385 is likely, supported by improved sentiment and potential bargain hunting at lower levels," Patel stated, highlighting the importance of this consolidation phase for establishing a sustainable base after the recent corrective move.
With a robust product pipeline and ongoing cost optimization efforts, Tata Motors PV appears well-positioned to leverage industry opportunities and drive sustainable growth, despite the current market challenges and upcoming Sensex exit.
