1. Tata group stocks rebound after 3-day fall post Cyrus Mistry ouster, but TCS, Tata Power still in red

Tata group stocks rebound after 3-day fall post Cyrus Mistry ouster, but TCS, Tata Power still in red

The market valuation of Tata Motors increased by R4,502 crore on Friday. The auto major had contributed nearly half of the total market cap loss of R26,000 crore in the past three sessions

By: | Mumbai | Published: October 29, 2016 6:34 AM

Tata Group shares rebounded on Friday, partly recovering losses made in the previous three trading sessions. All group stocks barring three —TCS, Tata Power and Rallis India — ended the session in green. The market valuation of Tata Motors increased by R4,502 crore in Friday’s trade. The auto major had contributed nearly half of the total market cap loss of R26,000 crore in the previous three sessions. The market capitalisation of Tata Steel and Titan Company also rose by R714 crore and R479 crore respectively.

After news broke that Tata Sons Board removed Cyrus Mistry as the group’s chairman on October 25, Tata Group lost a combined market cap of R10,843 crore which continued on October 26 and saw Tata companies losing market cap of R12,604 crore after Mistry wrote a letter to the board warning the group that it may have to write-down about two-thirds of its net worth due to its unprofitable businesses. “This figure is close to the net worth of the group which is at R1,74,000 crores. A realistic assessment of the fair value these businesses could potentially result in a write down over time of about R118,000 crores,” Mistry wrote.

On Friday, shares of companies like Tata Metaliks and TRF were up 5.9% and 4.3% respectively. Stocks of other Tata Group companies like Tata Elxsi, Tata Motors, Oriental Hotels, Tata Coffe and Tata Teleservices (Maharashtra) were up between 2% and 4%

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