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Tata Group shares extend losses; Tata Motors falls 5% in two sessions

Tata Group shares extend losses; Tata Motors falls 6% in two sessions

  Shares of Tata Group companies extended Tuesday’s decline and ended lower by upto 5% post Cyrus Mistry’s exit as Tata Son’s chairman.

Tata Motors, Tata Motors DVR, Tata Steel, Tata Chemicals and Indian Hotels, Tata Metaliks, Voltas, Rallis India, Tata Elxsi, Tata Global Beverages and Tata Communications ended down between 3%-5% on the BSE, as compared to 0.91% decline in the S&P BSE Sensex.

In the previous session, most of the Tata Group stocks had closed down in the range of 1%-5% after board of Tata Sons on Monday replaced chairman Cyrus Mistry and brought back Ratan Tata as interim chairman for four months

Investors have lost more than Rs 25,000 crore in Tata Group companies during past two trading days. The total market capitalization (m-cap) of top 20 Tata Group listed companies, in terms of m-cap declined by Rs 26,426 crore to Rs 824,594 crore on Wednesday from Rs 851,020 crore on Monday.

"What could provide reassurance to the market is the fact that Mr. Ratan Tata is back in saddle as the interim Chairman and also the tight deadline of 4 months given to the Selection Committee by the Board of Tata Sons. Also, the Selection Committee comprises of venerable corporate leaders. After the initial wobble the stocks should stabilize in my view," says Ajay Bodke, CEO & Chief Portfolio Manager - PMS, Prabhudas Lilladher.

In a surprise move, Tata Sons said its board has removed Cyrus Pallonji Mistry as chairman of the conglomerate and named Ratan Tata as interim chairman for four months. The announcement came after the end of Monday’s trading session. Ratan N Tata shall be the interim Chairman of Tata Sons until the new chairman is appointed, Tata Group companies said in a regulatory filing.

  Price in Rs Returns in % Mcap loss* Company 26/10/2016 1-day 2-days Rs crore Tata Motor-DVR 345.95 -4.6 -4.8 -882 Tata Motors 529.50 -4.3 -5.3 -8546 Tata Steel 398.85 -4.0 -6.4 -2656 Tata Metaliks 385.85 -3.8 -8.6 -92 Indian Hotels 121.40 -3.4 -6.4 -826 Voltas 385.00 -3.2 -2.1 -280 Tata Elxsi 1272.90 -3.2 -4.5 -187 Tata Global Beverages 145.40 -3.1 -5.5 -533 Rallis 225.45 -3.0 -4.5 -208 Tata Chemicals 549.50 -2.8 -4.9 -715 Tata Communications 636.45 -2.7 -4.9 -929 Trent 199.85 -2.1 -1.7 -118 Tinplate 85.35 -2.1 -4.8 -45 Tata Power 80.65 -2.1 -3.5 -798 Tata Tele(Mah) 7.60 -1.3 1.3 20 Tata Sponge Iron 614.60 -0.6 -3.6 -35 Tata Coffee 130.65 -0.4 -3.0 -77 Tata Investment Corpn 610.70 -0.1 -1.7 -57 TCS 2396.95 -0.1 -1.3 -6089 Titan Company 374.80 0.6 -0.6 -213           * Market capitalisaiton loss in past two trading days