Scrips of Tata Group firms pare losses, yet end in the red
Mumbai, Oct 25 (IANS) Scrips of Tata Group’s subsidiaries closed in the red 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 initially fell in a range of about one to four per cent during the day’s trade.
However, some recovery was seen in scrips during the intra-day trade.
At the BSE, shares of major firms like Tata Motors and Tata Steel pared some of their initial losses, but still ended in the red.
Stocks of Tata Chemicals declined by 2.09 per cent to Rs 565.50, and the Tata Motors’ scrip fell by 1.07 per cent to Rs 553.10.
Similarly, scrip of Tata Power dropped by 1.50 per cent to Rs 82.35, and that of Tata Steel declined by 2.51 per cent to Rs 415.50. The Tata Consultancy Services (TCS) stocks also dropped by 1.20 per cent to Rs 2,398.65.
In contrast, Voltas stocks rose by 1.09 per cent to Rs 397.75. On the other hand, shares of Tata Coffee declined by 2.63 percent to Rs.131.20.
The scrip of Tata Sponge Iron dwindelled by 3.04 per cent to Rs 618.15, and of Tata Elxsi dropped by 1.40 per cent to Rs 1,314.35.
The Titan Company’s scrip edged lower by 1.19 per cent to Rs 372.70. The stocks of Indian Hotels closed lower by 3.16 per cent to Rs.125.65.
“Tata Group stocks faced negative opening, tracking removal of Cyrus Mistry as Tata Sons Chairman on Monday,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“The group companies’ stocks made some recovery from their day’s lower levels, but still closed in the red.”
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.