Tata Motors witnessed a sharp rise in its share price on Wednesday, gaining nearly 3% in intraday trade amid strong global cues and growing optimism over the upcoming India-UK Free Trade Agreement (FTA). At the time of writing, the stock was trading at ₹686, up 1.89% for the day. It had opened at ₹676.70 and touched an intraday high of ₹693.10, outperforming the broader auto sector by 1.12%.
With a market capitalization of ₹2.47 lakh crore, Tata Motors emerged as one of the top gainers on both the Sensex and Nifty 50 indices. The rally was largely supported by positive global sentiment following the announcement of a US-Japan trade deal, which reduced tariffs on Japanese vehicles entering the US market. The news boosted shares of Japanese automakers such as Toyota, Honda, and Nissan, and drove the Nikkei 225 index up by more than 2%.
This global optimism had a ripple effect on Indian markets, particularly in the auto sector. Stocks of Indian automakers including Tata Motors, Maruti Suzuki, Mahindra , Bajaj Auto, and Hyundai Motor India saw intraday gains of up to 3%. The Nifty Auto index also rose 1% during early trade, reflecting a broader investor interest in the sector.
Tata Motors Set to Gain Big from India-UK Free Trade Agreement
Another major catalyst for Tata Motors’ surge is the anticipation surrounding the India-UK FTA, expected to be signed on July 24. According to reports by PTI, Commerce Minister Piyush Goyal will join Prime Minister Narendra Modi in London for the official signing of the agreement.
The FTA is seen as a potential game-changer for Tata Motors, especially its UK-based luxury car subsidiary, Jaguar Land Rover (JLR). The deal is expected to reduce import duties on vehicles shipped from the UK to India, enhancing the competitiveness of JLR products in the Indian market. Beyond automobiles, the agreement could also facilitate greater trade in sectors like leather, clothing, footwear, and alcoholic beverages, including whisky.
The India-UK FTA aims to double bilateral trade between the two countries to $120 billion by 2030. For Tata Motors, this could mean not only better margins for JLR but also a stronger foothold in both domestic and export markets.
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