The scrip fell 6.13 per cent to close at Rs 347.80 on the BSE. It declined nearly 6 per cent on the National Stock Exchange to end the day at Rs 348.35.
After opening at Rs 365.80, shares of the auto major began to slide and touched intra-day low of Rs 345.45 on the BSE. On the NSE, they touched a low of Rs 345.55 after opening at Rs 363.
Slym died yesterday after he fell from the 22nd floor of a hotel in Bangkok, where he had gone to attend a board meeting of the company's Thailand arm.
He was leading Tata Motors at a time when the auto industry is going through challenging times amid prolonged slowdown.
The broader market too witnessed a big sell-off, with the BSE 30-share benchmark index, Sensex, plummeting over 426 points to close at 20,707.45 points. This is the biggest drop in about five months.
The steep decline was due to massive selling across counters ahead of the Reserve Bank's monetary policy meet tomorrow and a global sell-off linked to US tapering concerns as well as Friday's 11 per cent dip in the Argentinian currency that triggered investor concerns worldwide.