MARKET WATCH

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CBS LINE

Volume 3(10)



MARKET WATCH - October 2025

NIFTY50

FII/DII Activity

SENSEX30

Open    24,620.55

FII        -5458.3 cr

Open    80,173.24

Close   25,936.20

Close   84,628.16

High     26,041.70

DII         +46089.4 cr

High     85,290.06

Low     24,605.95

Low     80,159.90

TOP GAINERS(Nifty500)

TOP LOSERS(Nifty 500)

   Ather   Energy Ltd.        36.4%

SKF India Ltd.             -54.1%

Sammaan Capital Ltd.   35.9%

Reliance Infrastructre  -13.3%

Federal Bank Ltd.          22.9%

Hyundai Motor India    -12.9%

 

 

 

 

 

Tata Motors Demerger: Unlocking Value in India’s Auto Giant.

Tata Motors Limited (TML), a flagship company of the Tata Group, is one of India’s largest automobile manufacturers. Founded in 1945, it produces a wide range of vehicles from passenger cars and commercial trucks to electric vehicles (EVs). With a global footprint through subsidiaries like Jaguar Land Rover (JLR), Tata Motors has established a strong presence in over 125 countries.

Tata Motors announced it will split its business into two separate listed companies: a Commercial Vehicles (CV) business and a Passenger Vehicles (PV) business, which includes EV and Jaguar Land Rover (JLR). The company intends to complete this restructuring by late 2025 through an NCLT-approved scheme of arrangement.

The split is driven by the need for operational independence and clearer insights for investors. It will enable separate valuations of the PV and CV divisions, encourage investments in EVs, and simplify the structure, similar to global competitors.

 

Market reaction

 

October 14 is the record date for the company's division into Tata Motors Passenger Vehicles Ltd (TMPV) and Tata Motors Commercial Vehicles Ltd (TMLCV). Investors holding shares through October 13 will be allocated one TMLCV share for each Tata Motors share owned.

 

Market Trend Update – October 2025

 

In October 2025, Tata Motors witnessed high volatility following the event of its long-planned demerger, separating the Passenger Vehicles and Commercial Vehicles businesses. On October 14, the stock fell nearly 40% as it began trading ex-demerger, a technical adjustment rather than a fundamental decline. Post-adjustment, the restructured Tata Motors (PV & EV arm) stabilized around ₹390–₹410, reflecting investor recalibration. Despite near-term uncertainty, the market sentiment remains cautiously optimistic, supported by strong festive season sales , robust EV growth potential, and expectations of long-term value creation post-restructuring.

 

SWOT ANALYSIS

 

                                                                                                                                          

 

Future Outlooks and Potentials

Tata Motors' demerger allows its passenger and commercial vehicle divisions to grow independently. The electric vehicle segment is likely to drive growth ,  supports policy incentives and strong consumer demand. JLR's recovery and premium status could boost global profits. Overall, the restructuring prepares Tata Motors for ongoing value creation and market leadership in the changing mobility landscape.

 

 

Muyeenudheen K

MSc in Econometrics and Financial Technology

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