Shares of Tata Group companies fell on Wednesday after the NCLAT restored Cyrus Mistry as the executive chairman of Tata Sons.
Shares of Tata Group companies fell on Wednesday after the NCLAT restored Cyrus Mistry as the executive chairman of Tata Sons. While Tata Motors plunged 3.05 per cent, other Tata group stocks including Tata Power, Tata Chemicals and Tata Global Beverages. Tata Global Beverages fell 4.14 per cent, Tata Coffee declined 3.88 per cent and Tata Motors plunged 3.05 per cent on the BSE. Tata Motors was the top loser. Also, Indian Hotels Company (IHC) fell 2.48 per cent, Tata Chemicals fell 1.65 per cent, Tata Investment Corporation (TIC) 1.22 per cent and Tata Power Company 0.98 per cent. However, Tata Consultancy Services (TCS) rose marginally by 0.07 per cent, Tata Metaliks gained 2.07 per cent, Tata Communications 1.68 per cent, Tata Elxsi 1.53 per cent, Tata Steel 1.16 per cent and Titan Company 0.09 per cent.
“The NCLAT Judgement has come out of the blue. A large number of Tata Companies are under restructuring under the new Chairman. This puts the entire process under a question mark. We could see some sell off, however, most Tata Companies are professionally run and to that extent, the damage should be limited,” investment advisor Sandip Sabharwal told Financial Express Online.
“The Tata group stocks had witnessed a knee-jerk reaction following the NCLAT order to reinstate Cyrus Mistry, which came in the last hour of trade. And, the stocks may continue to see volatile swings tomorrow also. However, the Tata group may come with some plan of action as they have four weeks to appeal against the decision in the supreme court. Any statement/clarification on this regard by the Tata group may comfort the markets,” Ajit Mishra, VP – Research, Religare Broking told Financial Express Online.
Meanwhile, benchmark equity indices, Sensex and Nifty touched new highs, tracking gains in index heavyweights HDFC Bank, RIL and ITC amid unabated foreign fund inflows. After rallying to its record intraday peak of 41,614.77, the 30-share BSE Sensex settled 206.40 points, or 0.50 per cent, higher at its all-time closing high of 41,558.57. Similarly, the broader NSE Nifty advanced 56.65 points, or 0.47 per cent, to its record closing high of 12,221.65.