M&M shares skid 6% amid fall in auto stocks; here's the latest update about the company you need to know
M&M shares skid 6% amid fall in auto stocks; here's the latest update about the company you need to know
Blog Article
Shares of Mahindra & Mahindra (M&M) have experienced a significant decline, falling 6% to around ₹2,679 on February 21, 2025. This drop marks the company's worst weekly performance in five years, with an overall decline of nearly 10% this week and 18% from its recent peak of ₹3,270 earlier this month. The stock has traded below all key moving averages and is approaching oversold territory, with a Relative Strength Index (RSI) of 32.
The decline is attributed to broader losses in the auto sector and concerns regarding potential import duty cuts on electric vehicles, particularly with Tesla planning to enter the Indian market. Despite the downturn, analysts remain optimistic, with 37 out of 40 maintaining a "buy" rating and suggesting a potential upside of 35.5% from current levels. Additionally, M&M's board has approved a rights issue to raise funds for its subsidiaries, which could impact investor sentiment moving forward.
written by HexaHome