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
