The market capitalization of Rs 20,000 crore has been erased. Why did this Tata Group stock fall 40% in only two weeks?
Tata Investment Corporation Ltd.’s shares have been in a downward spiral, with a 5% down circuit occurring for the ninth time in the last ten trading days. The stock’s turbulent journey is a reflection of wider market fears that have been exacerbated by recent Tata Group events.
Tata Investment Corporation Ltd. hit a record high of Rs 9,756 per share only a few weeks ago on March 7. But since then, the stock has fallen by 38%, with a closing price of Rs 5,960 on Friday. With the company’s worth falling from ₹49,365 crore to ₹30,155 crore in only two weeks, this substantial reduction has erased approximately Rs 20,000 crore in market capitalization.
The most recent setback to market confidence coincided with rumors that Tata Sons would go public by September 2025. At first, these rumors drove a spike in the price of Tata Investment, causing it to rise by 5% on successive days. However, sources from CNBC-TV18 indicate that Tata Sons’ chances of listing are slim, and the company is already looking at other options in order to abide with RBI orders.
Tata Sons sold 0.64% of its stake in Tata Consultancy Services Ltd. (TCS) for almost Rs 9,000 crore as part of one such asset divestment plan. Even though the goal of this action was to cut costs and simplify operations, it did not improve investor mood, which furthered Tata Investment’s decline.
The difficulties facing the Tata Group have also had an impact on its other companies. This week, TCS, Tata Chemicals—which is now subject to the F&O ban—and Tata Consumer Products all had decreases of 7.5%.
Particularly, Tata Consumer shares saw further pressure when CLSA began covering the company with an underweight rating. According to the article, there are worries that the company is “priced for perfection,” implying that the present prices have little room for growth.
TCS shares also reflected the general pessimism about technology equities, which was made worse by Accenture’s lower estimate for sales growth. A slow rebound in the discretionary sector was mentioned by Accenture, which made investors nervous about the state of the IT industry.
Investors continue to be cautious about the future course of Tata Investment Corporation Ltd. due to the uncertainty surrounding the Tata Group and general market circumstances. The recent decline in the company’s value highlights the difficulties conglomerates have in managing changing market conditions and regulatory obligations.
Investors are eagerly watching Tata Sons’ future steps and how they may affect the financial health and market performance of its subsidiaries, even if the company’s chances for listing currently seem questionable.
