Mumbai, August 12: Following the announcement of N. Chandrasekaran’s resignation as Chairman of Tata Sons, a significant sell-off occurred in the shares of Tata Group’s listed companies on Wednesday. Investors adopted a cautious stance in response to the leadership change, leading to declines of nearly 6% in several major companies within the group.
The most significant pressure was observed in Tata Consultancy Services (TCS), whose shares fell by approximately 5.9% during trading. At one point, the stock hit a daily low of ₹2,300.10. However, by the time of reporting, it was trading at ₹2,328, reflecting a decline of 4.7%.
Similarly, shares of Tata Motors Passenger Vehicles (TMPV) recorded a drop of around 4%, reaching a low of ₹334.20 during the session, indicating a 3.85% decrease.
Additionally, Tata Steel shares slipped by over 2%, hitting a daily low of ₹183.60, down 2.4%. Titan’s shares also fell by 2.65%, reaching a low of ₹4,992, while Tata Consumer Products saw a decline of about 2%.
The selling pressure from investors also impacted other companies within the group. Shares of Tata Alexi, Tata Communications, Tata Technologies, Tata Power, Trent, and Tata Motors (Commercial Vehicles) dropped by up to 2% during trading, although some recovery was noted later. Tata Investment Corporation and Tejas Networks also traded in the red.
Notably, not all companies experienced a decline. Tata Chemicals stood out as a strong performer, recording an increase of nearly 2% despite the prevailing market conditions.
Chandrasekaran announced on Wednesday that he would not seek reappointment as Chairman of Tata Sons. However, he will complete his current term, which ends in February 2027. This decision comes just before the annual general meeting (AGM) scheduled for August 18.
Chandrasekaran’s term will conclude on February 20, 2027. He has opted not to make himself available for a third term, marking the end of nearly nine years of leadership at one of India’s largest business groups.
Tata Sons is the holding company for the country’s largest business conglomerate, which includes major firms like TCS, Tata Motors, Tata Steel, and Titan, as well as unlisted companies like Air India. The group operates over 30 companies across various sectors, including IT, automobiles, metals, aviation, energy, and FMCG.
It is noteworthy that Chandrasekaran joined the Tata Group in 1987. He spent nearly 30 years at TCS in various roles and became its CEO in 2009. Under his leadership, TCS emerged as the most valuable company in the country.
He was appointed Chairman of Tata Sons in January 2017. Following his resignation, investors are keenly watching to see who will take over the leadership of the Tata Group and the direction of its future strategy.
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