According to stock market experts, European markets are rising after strong business outlook in various European countries and this will benefit those companies as well, which operates from other countries. TCS and Tata Motors are among those overseas companies, which have strong business exposure in Europe and this business momentum is expected to trickle down in the balance sheet of TCS and Tata Motors as well. So, in short to medium term, TCS and Tata Motors shares are expected to get benefit of this buzz and witness some strong buying by the Dalal Street bulls.
On why TCS and Tata Motors share may rally after surge in the European markets, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "European markets have hit 52-week highs, which reflects surge in the business activities in the region. As TCS and Tata Motors have strong overseas business in the region, these companies area expected to report improved margins and order book in upcoming quarters. In fact, if we look at the overseas business of these two Tata group companies, TCS has got more than 30 per cent overseas revenue from Europe in FY22 whereas Tata Motors' JLR got around 25 per cent overseas business revenue from European markets. So, surging business activities may boost the balance sheet of these Tata group companies in short to medium term."
Expecting strong upside in TCS and Tata Motors share price, Sumeet Bagadia, executive Director at Choice Broking said, "TCS share price today is above 200 DMA, which means the stock is in uptrend and it may signal sharp upside moves in near term. Those who have TCS in their stock portfolio, are advised to hold the stock further for short term target of ₹3500 and ₹3600 apiece. However, one must upgrade the trailing stop loss at ₹3250 while holding TCS stocks. In fact, one can initiate momentum buying in TCS shares for ₹3600 target maintaining stop loss at ₹3250 apiece levels."
Sumeet Bagadia of Choice Broking said that Tata Motors share price is bouncing back from its lower levels and it may go up to ₹475 apiece levels in short term.
"Tata Motors shares are bouncing back from the lower levels. One can initiate buying in this Tata group stock for short term targets of ₹450 and ₹475 maintaining stop loss at ₹380 apiece levels," said Sumeet Bagadia.
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In European markets, FTSE 100 index hit record high of 7,864.95 on Friday, CAC 40 index has climbed above 7,000 levels and just around 200 points away from its life-time high of 7,227.35Euro Stoxx 50 index ended at 4,150 levels, which is less than 200 points lower from life-time high. DAX index has been in continuous uptrend since September 2022 and it is around 1,000 points away from its 52-week highs.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
