Tata Motors sheds 2%, China slowdown may impact JLR sales

However, China's annual consumer inflation eased to a five-year low of 1.4 percent in November from 1.6 percent in October, the lowest since November 2009, signalling persistent weakness in the world's second-largest economy and giving policymakers more room to ease policy to support growth.

The China's consumer price index fell 0.2 percent in November from October while the producer price index in November declined 2.7 percent from a year earlier, its 33rd consecutive monthly decline, as sluggish demand curbed the pricing power of companies.

Media reports suggest that the 2015 target for gross domestic product (to be set by policymakers soon) is expected to be around 7 percent, the lowest in a last decade.

Experts feel if the slowdown in China continues in 2015 then the companies exposed to the world's second largest economy may get affected. Jim Walker of Asianomics said China is currently growing at 5-6 percent, much below 7 percent forecasted. He expects China growth to slowdown to 3-4 percent next year.

Hence, he recommends investors stay away from companies exposed to China. Companies exposed to luxury goods segment in China will be impacted, Walker says.

At 10:13 hours IST, the stock was quoting at Rs 500.20, down Rs 2.90, or 0.58 percent on the BSE.

(With inputs from agencies)