Nifty 50 on track for 5-month decline, but this index stock has been falling for 7 months. Do you own?

Amid relentless selling by overseas investors, who have withdrawn over ₹3 lakh crore through exchanges since October 2024, the Indian Nifty 50 index is on track for a five-month losing streak in February—an uncommon occurrence, with the last such prolonged decline recorded in 1996.

However, Tata Motors, a key index stock, is set for an even worse monthly decline as it is poised to end February in the red, marking its seventh straight monthly decline—the worst losing streak for the stock in recent years.

Once a darling of Dalal Street investors and one of the top-performing Tata Group stocks, Tata Motors is now under significant selling pressure, falling to crucial levels and breaking important support zones. It has emerged as the worst performer among Nifty 50 constituents in 2025. 

Over the last seven months, the stock has fallen by 45.32%, correcting from ₹1,156 to the current trading price of ₹632 apiece—a level not seen since October 2023. From its peak of ₹1,179, it has plunged by 46.39%.

This significant drop has resulted in massive losses for retail investors, who held a 21.9% stake in the company at the end of the December quarter. The sustained sell-off has also wiped out ₹2 lakh crore in market capitalization, bringing it down from ₹4.32 lakh crore to the current ₹2.32 lakh crore.

As a key constituent of the Nifty Auto index, its weak performance has also weighed on the index, which is down nearly 10% so far in February.

What’s driving Tata Motors’ stock lower?

The prolonged weakness in the stock can be attributed to weak Jaguar and Land Rover (JLR) margins, a decline in commercial vehicle (CV) sales, rising competition in the PV segment, economic challenges in European markets, and weak demand in China.

Additionally, reports of Tesla’s entry into the Indian market have added another layer of concern, as increased competition in the passenger vehicle (PV) EV segment could impact Tata Motors, which currently holds a significant market share.

Further adding to challenges, automakers expect another year of moderate performance in FY25-26, continuing the trend seen in the current fiscal year. The persistent weakness in small car sales—driven by affordability constraints, easing pent-up demand, and a high base effect—is reflected in the sector’s sluggish growth rates.

Meanwhile, the Donald Trump administration has been announcing a series of tariffs on imports into the U.S., with its latest move proposing a 25% tariff on European automobile imports.

On Wednesday, during the first Cabinet meeting of his second term in office, he stated that duties on Canada and Mexico would take effect on April 2 and floated a 25% “reciprocal” tariff on European cars and other goods, as per the media reports.

It was also reported that the Trump administration is also working on plans to impose reciprocal tariffs on Indian goods, with reports suggesting that an official announcement could come in May.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.