Tata Group Stocks Lose ₹39,000 Crore Market Value As Tata Sons Deadlock Intensifies

On Friday, Tata group companies experienced significant market value losses, totaling nearly ₹39,000 crore, due to disagreements during the Tata Sons board meeting regarding Chairman N Chandrasekaran's continued five-year term. Tata Trusts Chairman Noel Tata referred to the decision to reappoint Chandrasekaran as "illegal." This came amid a broader dispute over Tata Sons' proposed listing, following the Reserve Bank of India's rejection of the holding company's request to surrender its regulatory registration.

The Nifty Tata 25 Cap Index declined 1.12%, underperforming the benchmark Nifty 50, which gained 0.33%. TCS led the market value decline, shedding 3.9% to ₹2,105, erasing ₹30,754 crore from its market capitalization. Other major Tata companies also saw significant drops: Tata Chemicals fell 11% to ₹693.25, Tata Technologies declined 4.8% to ₹722.45, and Tata Elxsi dropped 3.4% to ₹3,266.7.

The market reaction contrasted with the Shapoorji Pallonji Group's support for Tata Sons' listing after the RBI directive. Analysts attribute the short-term pressure to governance concerns, noting that the Tata group index has underperformed the Nifty 50 by losing ₹3.8 trillion in market capitalization on a year-to-date basis, reflecting an average decline of about 3%. TCS has been a major contributor to the decline, falling 33.4% so far this year.