Shares of Tata Motors on Monday sank by more than 8 per cent following a downgrade by various brokerages on a cautious commentary by the homegrown auto major.

The stock plummeted 8.34 per cent to end at ₹959.55 on the BSE. During intra-day trades, it crashed 9.44 per cent to ₹948. On the NSE, the counter lost 8.34 per cent to close at ₹959.40. The selloff resulted in the company’s market capitalisation dropping ₹29,016.23 crore to ₹3,19,012.47 crore. Tata Motors was also the biggest laggard among the Sensex and Nifty firms.

These losses came inspite of the company reporting a three-fold rise in consolidated net profits for the quarter ended March 31. However, the forecast was not that rosy. Tata Motors said while demand for passenger cars would remain strong, the high base effect, coupled with extraneous factors such as the elections and heat wave may keep the growth rate at moderate levels.

The commentary led to global brokerages downgrading the stock. Nomura cut the rating to neutral from buy.

Morgan Stanley also downgraded the stock to an equalweight from overweight. It, however, hiked the target price to ₹1,100 from ₹1,013. Its analysts observed that while the company has delivered in all major areas and its execution is strong, a lot of the good news is already priced into the stock. UBS called the company’s results “underwhelming’’ and reiterated its sell rating.