Cyrus Mistry’s ouster from Tata Sons : Scrip of Tata Group firms pare initial losses
Mumbai, Oct 25 : Scrips of Tata Group’s subsidiaries pared some of their initial losses during the mid-afternoon trade session on Tuesday, a day after Cyrus P. Mistry was removed as the Chairman of Tata Sons.
Tata Sons is the holding company of the Tata Group. Shares of various subsidiaries of the industrial conglomerate fell in a range of about one to four per cent during the initial part of the day’s trade.
At the BSE, shares of major firms like Tata Motors and Tata Steel pared some of their initial losses, but still traded in the red.
Stocks of Tata Chemicals declined by 3.38 per cent to Rs 558 around 2.10 p.m, whereas the Tata Motors’ scrip fell by 1.06 per cent to Rs 553.20.
Similarly, scrip of Tata Power dropped by 1.44 per cent to Rs 82.40. Shares of Tata Steel declined by 2.40 per cent to Rs 415.95. The Tata Consultancy Services (TCS) stocks dropped by 1.12 per cent to Rs 2,400.75.
“Tata Group stocks faced negative opening tracking removal of Cyrus Mistry as Tata Sons Chairman,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“The group companies’ stocks have made some recovery from their day’s lower levels.”
According to Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services: “The equity markets generally take somewhile to digest such major news. So, given the information vacuum, the sharp volatility in stocks of Tata’s subsidiaries was understandable.”
In a surprise move on Monday, the industrial conglomerate replaced Mistry as its Chairman and named Ratan Tata as the interim chairman of the company.
The decision was taken at the company’s board meeting.