Shares of Noel Tata-led companies like Trent, Tata Investment Corp and Voltas on Friday rose 0.6-2.6% after he was appointed chairman of Tata Trusts. Noel Tata is currently serving as chairman of Trent, Tata Investment Corp, Voltas, and as vice chairman of Tata Steel, Titan Company.
Trent was the biggest gainer among these companies as it rose 2.6%.
Meanwhile, Tata Investment Corp shares went up 1.7%. The shares of the other four companies rose up to 1%.
Trent, which recently entered the Nifty 50 index, has been the best-performing Tata company this calendar year with the stock soaring nearly 170%.
Tata Trusts hold a 66% stake in Tata Sons, which is the holding company of the Tata Group companies.
Market participants said the gains today in some group companies was largely driven by sentiment. “The Trust is investing money into Tata Sons. It is the job of Tata Sons to allocate money to the operating companies. So, the Trust is not deciding what money Tata Sons should allocate to the operating companies,” said Deven R Choksey, founder and managing director of DRChoksey FinServ.
Choksey said the investors might be getting a bit excited hoping that companies which are headed by Noel Tata will start getting more amount of allocation. “That is not correct,” he said.
Ratan Tata, who was the chairperson of Tata Trusts, passed away late on Wednesday. N Chandrasekaran is the chairman of Tata Sons and promoter of all the Tata Group companies.
Overall, the performance of other Tata companies was mixed on Friday. Stocks of Tata Power, Tata Technologies, Tata Elxsi, Tata Consultancy Services and Tata Teleservices ended 1-2.1%.