Tata Motors hits a new high and slumps

Tata Motors had hit a new 52-week high yesterday at Rs.483.15 and today, it hit another new high at Rs.486.15. The mood was upbeat on the counter after news came in that Brexit might not happen. But now the stock has slipped into the red, down almost 2% at Rs.476 as the overall market is weak and once again anxious about the looming Brexit referendum tomorrow.

There is a report published in Reuters which has talks about the worst-case scenario if Brexit happens. This is an internal document, prepared by the company chief economist, David Rea, to outline the possible consequences if Britons vote to leave the world's biggest trading bloc in Thursday's referendum. And as per this document, Jaguar Land Rover could see a $1.47 billion or 1 billion pounds cut in its profitability by the end of the decade.

Reuters has reported that the 1 billion pound decline in pre-tax profit by 2020 would apply if Britain returned to World Trade Organisation rules for trade with Europe, involving a 10 percent tariff on exports and an inbound tariff of roughly 4 percent on components.