Tata Group Stocks Slip After Strong Rally
Several Tata companies give back part of their previous gains as investors assess developments around Tata Sons and a possible public listing.
Mumbai, Sep 18 : Shares of several Tata Group companies declined in early trading on Friday, September 18, giving back part of the gains recorded in the previous session as investors assessed fresh developments involving Tata Sons.
Tata Steel, Tata Motors, Tata Elxsi and other group companies came under pressure during the session. Tata Capital, however, moved in the opposite direction and gained around 1.1%.
The market reaction followed a significant development on Thursday, when Tata Sons reappointed N. Chandrasekaran as chairman for another five-year term and said it would consider a public listing of the holding company.
The Shapoorji Pallonji Group, a major shareholder in Tata Sons, has also proposed selling part of its stake for at least ₹25,000 crore ($2.61 billion). The proposal has drawn investor attention because of its potential implications for Tata Sons’ ownership structure and future capital-market plans.
Tata Group stocks had rallied sharply in the previous session following the announcement, but some of those gains were reversed on Friday as investors reassessed valuations and the possible impact of the developments.
The broader Indian equity market remained positive, with the Nifty 50 and Sensex opening higher as crude oil prices eased. However, declines in several large Tata companies limited gains in some parts of the market.
