Tata Motors, Samvardhana, Bharat Forge rise up to 2% on US-European Union trade deal

Nifty Auto has gained over 7 percent in the last 6 months.

Shares of Tata Motors, Samvardhana Motherson, Sona BLW, and Bharat Forge gained up to 2 percent each on July 28 as investors cheered a sweeping US-European Union trade deal that is expected to lower tariff barriers and boost automotive exports.

The US on Sunday evening unveiled a landmark trade agreement with the EU that standardises tariffs across most product categories at 15 percent. The move marks a significant shift from the existing 27.5 percent duty on car imports from the EU and comes just days ahead of President Donald Trump’s August 1 tariff deadline.

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The deal, which follows a similar agreement with Japan last week, is expected to ease trade frictions and could offer a competitive edge to several Indian companies with deep linkages to the US and EU auto ecosystems.

Tata Motors rose 1.6 percent as analysts flagged potential benefits to Jaguar Land Rover, which exports a substantial portion of its US-bound vehicles from Slovakia, an EU member. The reduced tariff rate is likely to offer cost advantages, especially with nearly a third of JLR’s volumes headed to the US.

Shares of Samvardhana Motherson climbed 1.3 percent. The company supplies components to OEMs in Germany and Mexico that cater to the US market, which accounts for roughly 6 to 7 percent of its consolidated revenue. The easing of tariffs could translate into smoother trade flows and potentially higher volumes.

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Sona BLW advanced 1.3 percent on the day. With 43 percent of its revenue coming from the US, the company stands to gain meaningfully from a more predictable and favourable tariff regime.

Bharat Forge gained 1 percent, buoyed by the prospect of stronger export momentum. The US accounts for 35 to 40 percent of its standalone exports, and a friendlier trade environment could drive incremental demand for its products.

At about 9:45 am, Nifty Auto was trading at 23,898, higher by 0.5 percent from the last close on the NSE. Nifty Auto has gained over 7 percent in the last 6 months.

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