Why is TATA Motors share price falling suddenly after a good first quarter of 2018?

What makes you say that TATA Motors had a great Q1 this year? In early February 2018, its stock slumped to its 52-week low, priced around Rs 356.5. Currently, the price is Rs 326.50. It still is in profit when compared YoY. But aside from its long-term investors, others didn’t gain much.

Now, coming to the fall in the price of Tata Motors, why it happened (however small or large its margin) – Tata motors has long been a good avenue for the new investors, very reliable and sustainable. When its price was rising and peaked at Rs 560 last year, it attracted many market players. They started investing more in it. But with how the Indian and global share market shaped in recent times with crash-like situation, every share took a big hit. Those companies that saw an increased price surge, slipped to the ground just as fast, which includes TATA motors.

For the time being, it looks like the price will consolidate at around Rs 380—at least until the third quarter of the year. Is it a good time to buy Tata motors share? If you’re a long-term investor, YES! If you’re a trader, looking to make short-term gains, waiting and watching how the market unfolds is what I would advise you.