Cyrus Mistry ouster: Tata group stocks fall up to 4%, pull Nifty down under 8,700-mark

Market sentiment was downbeat after Mistry was removed as chairman of India`s largest conglomerate Tata Group and replaced by his predecessor Ratan Tata in the interim, a development that can trigger a confrontation between the single-largest shareholder and the company`s founding family.

Zee Media Bureau

New Delhi: The BSE benchmark Sensex fell over 130 points and the NSE Nifty dipped below the key 8,700-mark in mid-session trade Tuesday as Tata group stocks pulled down the indexes after Cyrus Mistry was replaced as its chairman yesterday.

The 30-share index last quoted lower by 123.07 points or 0.44 percent, to 28,056.01 after moving in range of Rs 28,211.41-28,013.96.

The NSE Nifty also dipped below the 8,700-mark by falling 32.45 points, or 0.37 percent, at 8,676.50.

Market entiment was downbeat after Cyrus Mistry was removed as chairman of India's largest conglomerate Tata Group and replaced by his predecessor Ratan Tata in the interim, a development that can trigger a confrontation between the single-largest shareholder and the company's founding family.

Major Tata group stocks such as Tata Steel, Tata Communications, Tata Steel, Tata Motors, Tata Power, Tata Chemicals and TCS all bore the brunt and fell by up to 4 percent.

Shares of Tata Steel declined by 4 percent, Tata Power 3.11 percent, Tata Motors 2 percent and Tata Consultancy Services 1.60 percent on BSE. Among others, Tata Chemicals went down 4.18 percent, Tata Communications dropped 3.93 percent, Tata Coffee (3.89 percent) and Tata Global Beverages (3.47 percent).

Shares of Tata Sponge Iron slipped 3.35 percent and Tata Elxsi shed 2.30 percent.

In the rest of Asia, Hong Kong's Hang Seng was down 0.20 percent and Shanghai Composite fell 0.06 percent in early trade. Japan's Nikkei was trading in the positive zone, rising 0.62 percent.

The Dow Jones Industrial Average had ended 0.43 percent higher yesterday.

With PTI Inputs