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

Tata group companies witnessed heavy selling on Friday, wiping out nearly ₹39,000 crore in market value after disagreements surfaced during the Tata Sons board meeting over Chairman N Chandrasekaran’s continuation for another five-year term.

The sharp market reaction followed comments from Tata Trusts Chairman Noel Tata, who described the decision to reappoint Chandrasekaran as “illegal”.

The development came amid a larger dispute over Tata Sons’ proposed listing after the Reserve Bank of India rejected the holding company’s request to surrender its regulatory registration.

Tata stocks see sharp decline after boardroom dispute

The Nifty Tata 25 Cap Index declined 1.12%, underperforming the benchmark Nifty 50, which gained 0.33%. Tata Consultancy Services (TCS) accounted for the largest loss in market value, declining 3.9% to ₹2,105 and erasing ₹30,754 crore from its market capitalisation.

Tata Chemicals witnessed the steepest fall among major Tata companies, dropping 11% to ₹693.25. Tata Technologies declined 4.8% to ₹722.45, while Tata Elxsi fell 3.4% to ₹3,266.7.

The selling pressure contrasted with the Shapoorji Pallonji Group’s support for Tata Sons’ listing following the RBI directive.

Analysts see short-term pressure amid governance concerns

“The losses tracked broader weakness in technology stocks, with the Nifty IT index emerging as the worst-performing major sector index. The index declined 1.03% and lost ₹23,945 crore in market capitalisation.

On a year-to-date basis, the Tata group index has underperformed the Nifty 50, losing ₹3.8 trillion in market capitalisation, representing an average decline of about 3%. TCS has been among the biggest contributors to the fall, declining 33.4% so far this year.