Tata Group subsidiaries pare initial losses

Scrips of Tata Group’s subsidiaries pared some of their initial losses during the midafternoon trade session yesterday, a day after Cyrus P. Mistry was removed as chairman of Tata Sons. Tata Sons is the holding company of the Tata Group.

Shares of various subsidiaries of the industrial conglomerate fell in a range of about one to four per cent during the initial part of the day’s trade.

At the BSE, shares of major firms like Tata Motors and Tata Steel pared some of their initial losses, but still traded in the red.

Stocks of Tata Chemicals declined by 3.38 per cent to Rs558 (Dh30.61) around 2.10pm, whereas Tata Motors fell by 1.06 per cent to Rs553.20.

Similarly, Tata Power dropped by 1.44 per cent to Rs82.40. Shares of Tata Steel declined by 2.40 per cent to Rs415.95. The Tata Consultancy Services stocks fell by 1.12 per cent to Rs2,400.75.

Dhruv Desai, director and chief operating officer of Tradebulls, said: “The group companies’ stocks have made some recovery from their day’s lower levels.”

According to Anand James, chief market strategist, Geojit BNP Paribas Financial Services: “The equity markets generally take somewhile to digest such major news. So, given the information vacuum, the sharp volatility in stocks of Tata’s subsidiaries was understandable.”