Tata Group loses ₹68,119 crore in m-cap after Chandra exit decision; TCS, Titan, Tata Motors, Tata Steel lead fall
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Tata Group shares saw broad-based selling on Wednesday after N. Chandrasekaran decided not to seek reappointment as chairman of Tata Sons. The combined market capitalisation of 17 listed Tata Group companies declined by ₹68,119 crore to ₹26.32 lakh crore, from nearly ₹27 lakh crore a day earlier.
The sell-off came amid broader market weakness, with the Sensex declining as much as 656 points, or 0.84%, to hit an intraday low of 77,497.93, while the Nifty50 dropped 206 points, or 0.84%, to 24,265.95. Elevated crude oil prices and weakness in IT stocks also weighed on investor sentiment.
TCS accounted for the bulk of the market-cap erosion, with its market value declining by ₹42,440 crore to ₹8.40 lakh crore after the stock fell 4.79% to ₹2,323.30. Titan was the second-biggest contributor to the decline, losing ₹9,304 crore in market capitalisation as its shares fell 1.98%.
Tata Motors Passenger Vehicles lost ₹4,898 crore, while Tata Steel’s market cap declined by ₹4,745 crore. Tata Consumer Products shed ₹3,098 crore, Tata Power ₹1,598 crore and Indian Hotels ₹1,566 crore.
Among the other major Tata Group companies, Tata Communications lost ₹812 crore, Tata Elxsi ₹606 crore, Trent ₹907 crore, Tata Investment Corporation ₹508 crore and Tejas Networks ₹265 crore. Tata Teleservices (Maharashtra) saw its market capitalisation decline by ₹92 crore.
Not all Tata stocks were reeling under selling pressure. Tata Motors added ₹1,786 crore to its market value, while Tata Capital gained ₹700 crore. Tata Chemicals and Voltas added ₹167 crore and ₹66 crore, respectively.
Why did Tata stocks fall?
The selling pressure followed Chandrasekaran’s decision not to seek another term as Tata Sons chairman after a board member opposed the proposed extension of his tenure. Chandrasekaran said the six months of uncertainty over the leadership issue had made it necessary for the board to move ahead with succession planning.
In a statement issued on Wednesday, Chandrasekaran said he had completed 40 years of professional life at the Tata Group and described his decade at the helm of Tata Sons as both an honour and a responsibility.
He said his current tenure as chairman ends on February 20, 2027. According to Chandrasekaran, the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended extending his next term by five years. The recommendation was also recorded and supported by the Tata Sons Nomination and Remuneration Committee and the board.
Chandrasekaran did not name the board member who opposed his reappointment. However, reports at the time identified Noel Tata, chairman of Tata Trusts, as the director who had opposed the proposal. His decision not to seek another term comes amid reported differences with Noel Tata, who heads the Tata Trusts, which holds about 66% of Tata Sons. The differences have reportedly centred on governance, board representation and strategic matters concerning the holding company, including its regulatory status and the possibility of a future listing.
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