Tata Group stocks on Tuesday ended up to 3 per cent lower after Cyrus Mistry was removed as chairman of India’s largest conglomerate and replaced by his predecessor Ratan Tata in the interim, with key firms losing nearly Rs 10,700 crore collectively in market capitalisation.
Shares of Tata Steel fell by 2.51 per cent, Tata Power lost 1.5 per cent, Tata Consultancy Services slipped 1.20 per cent and Tata Motors went down by 1.07 per cent on BSE.
The market valuation of TCS declined by Rs 5,753.3 crore to Rs 4,72,636.70 crore, while Tata Motors lost Rs 2,432.01 crore to Rs 1,58,990.99 crore.
The valuation of Tata Steel dropped by Rs 1,039 crore to Rs 40,354 crore and Tata Power saw an erosion of Rs 337.38 crore to Rs 22,272.62 crore.
Shares of Tata Sponge Iron dropped by 3.04 per cent, Tata Coffee declined by 2.63 per cent, Tata Global Beverages (2.47 per cent) and Tata Communications (2.26 per cent).
Tata Chemicals fell by 2.09 per cent and Tata Elxsi shed 1.40 per cent.
Together all these firms lost Rs 10,688.51 crore in market capitalisation. During the morning trading session these stocks had lost up to 4.2 per cent.
“What would provide reassurance to the market is the fact that Ratan Tata is back in saddle as the interim Chairman as also the tight deadline of four months given to the selection committee by the Board of Tata Sons. After the initial wobble the group’s shares should stabilize in my view,” said Ajay Bodke, CEO & Chief Portfolio Manager PMS, Prabhudas lilladher.