auto sector looks weak
Mahindra & Mahindra's (M&M) share price has experienced a decline recently, influenced by several factors:
1.Investment in Subsidiaries: In February 2025, M&M announced plans to invest up to ₹4,500 crore in rights issues for its subsidiaries—₹3,000 crore for Mahindra & Mahindra Financial Services Ltd. and ₹1,500 crore for Mahindra Lifespace Developers Ltd. This move raised concerns among investors about potential cash outflows, leading to a significant drop in M&M's stock price.
2.Potential Entry of Tesla into the Indian Market: Reports suggest that Tesla is preparing to enter the Indian automotive market. This development has caused apprehension among local automakers, including M&M, about increased competition in the electric vehicle segment. Consequently, M&M's shares declined by approximately 6.2% following these reports.
Reuters
3.Ongoing Tax Disputes: M&M is involved in tax disputes amounting to $694 million, primarily related to income tax and excise duties. Such significant disputes can create uncertainty and negatively impact investor sentiment.
technials
1.price faced rejection from 3250 levels
2.3 weekly down bars
3. retracement followed by bearish bar
4.negative crossover of 18 and 50 week EMA looks imminent
4.MACDS are negative
target and SL marked
Mahindra & Mahindra's (M&M) share price has experienced a decline recently, influenced by several factors:
1.Investment in Subsidiaries: In February 2025, M&M announced plans to invest up to ₹4,500 crore in rights issues for its subsidiaries—₹3,000 crore for Mahindra & Mahindra Financial Services Ltd. and ₹1,500 crore for Mahindra Lifespace Developers Ltd. This move raised concerns among investors about potential cash outflows, leading to a significant drop in M&M's stock price.
2.Potential Entry of Tesla into the Indian Market: Reports suggest that Tesla is preparing to enter the Indian automotive market. This development has caused apprehension among local automakers, including M&M, about increased competition in the electric vehicle segment. Consequently, M&M's shares declined by approximately 6.2% following these reports.
Reuters
3.Ongoing Tax Disputes: M&M is involved in tax disputes amounting to $694 million, primarily related to income tax and excise duties. Such significant disputes can create uncertainty and negatively impact investor sentiment.
technials
1.price faced rejection from 3250 levels
2.3 weekly down bars
3. retracement followed by bearish bar
4.negative crossover of 18 and 50 week EMA looks imminent
4.MACDS are negative
target and SL marked
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.