Cyrus Mistry ouster: Tata stocks fall further by up to 4%; total wipe out Rs 21K cr
Key Tata Group firms lost over Rs 10,000 crore for the second day Wednesday, extending the total erosion in market capitalisation to more than Rs 21,000 crore following Cyrus Mistry's ouster as Tata Group chairman.
New Delhi: Key Tata Group firms lost over Rs 10,000 crore for the second day Wednesday, extending the total erosion in market capitalisation to more than Rs 21,000 crore following Cyrus Mistry's ouster as Tata Group chairman.
These firms had lost about Rs 10,700 crore yesterday.
Shares of Tata Motors dipped 4.27 percent, Tata Steel slumped 4.01 percent, Tata Power lost 2.06 percent and TCS fell by 0.07 percent on BSE today.
Besides, Tata Metaliks slipped 3.85 percent, Tata Elxsi dropped 3.15 percent, Tata Global Beverages (3.10 percent), Tata Chemicals (2.83 percent), Tata Communications (2.68 percent), Tata Sponge Iron (0.57 percent) and Tata Coffee (0.42 percent).
Tata Group overall commands market capitalisation of over USD 125 billion (close to Rs 8.5 lakh crore), with software giant TCS alone accounting for Rs 4,72,301.73 crore.
In the stock market, the BSE benchmark Sensex too fell by 254.91 points to end at 27,836.51.
Mistry's family firm Shapoorji Pallonji Group has 18.4 percent in Tata Sons -- the holding firm of the group companies.
In the surprise development, the board of Tata Sons, where 66 percent shares are held by philanthropic trusts endowed by members of the Tata family, ousted Chairman Cyrus Mistry, saying it was acting "for the long-term interest" of the firm.
His predecessor Ratan Tata has been made the interim chairman and a committee has been set up to look for a new head of the USD 100 billion conglomerate.
Sacked unceremoniously, a "shocked" Cyrus Mistry has levelled a series of allegations against Ratan Tata and contended that he was pushed in to a position of "lame duck" chairman and changes in decision making process created alternate power centres in Tata Group.