Shares of Tata Investment Corporation Ltd. ended in a 5% lower circuit for the ninth out of the last 10 trading sessions. The stock has declined over 21% this week after a 22% drop last week.
On March 7, the stock had made a record high of ₹9,756. Since then, it has corrected 38% from those levels to close at ₹5,960 on Friday.
This 10-day drop has meant that the stock has lost nearly ₹20,000 crore in market capitalisation. The company's market cap has gone down from ₹49,365 crore on March 7 to ₹30,155 crore two weeks later.
The week in which Spark Capital wrote about Tata Sons' potential listing by September 2025, the stock had made consecutive upper circuits of 5%.
However, sources told CNBC-TV18 that the Tata Sons listing is unlikely and the group is looking at ways to navigate the RBI mandate. Some of the options that were on the table included reducing debt at the group level and hiving off entities like Tata Capital.
Post that, Tata Sons also sold 0.64% equity in its cash cow Tata Consultancy Services Ltd. (TCS) for around ₹9,000 crore.
Besides Tata Investment, other Tata Group companies like Tata Chemicals, which is in the F&O ban, Tata Consumer Products and TCS have also declined 7.5% each this week.
Tata Consumer shares fell after CLSA initiated coverage on the stock with an underweight rating, saying that the stock is priced for perfection and valuations leave little room for upside.
TCS also declined in-line with the broader negative sentiment surrounding technology stocks and after Accenture cut its revenue growth guidance for its current financial year citing a lack of recovery in the discretionary segment.
First Published: Mar 22, 2024 3:33 PM IST
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