Several Tata stocks fall after NCLAT restores Cyrus Mistry as holding firm chief

Tata Global Beverages plunged 4.14 per cent, Tata Coffee fell 3.67 per cent and Tata Motors dropped 3.05 per cent on the BSE.

Tata Motors was the top loser in the BSE Sensex pack. Indian Hotels Company — which operates Taj group of hotels — was down 2.48 per cent, Tata Chemicals fell 1.65 per cent, Tata Investment Corporation 1.22 per cent, Trent 0.34 per cent and Tata Power Company 0.98 per cent.

The impact of the reinstatement of Cyrus Mistry as Tata Sons Chairman, the holding company of the Tata empire, by the National Company Law Appellate Tribunal (NCLAT) was felt on the stock market, with shares of various Tata group companies falling up to 4 per cent on Wednesday.

Corporate and market watchers expressed doubts whether Mistry will be allowed to function smoothly even if he returns to Tata Sons as Chairman, as the Tata Trusts — which holds 66 per cent stake in Tata Sons — is controlled by Ratan Tata who was instrumental in ousting Mistry from the top position.

Tata Global Beverages plunged 4.14 per cent, Tata Coffee fell 3.67 per cent and Tata Motors dropped 3.05 per cent on the BSE. Tata Motors was the top loser in the BSE Sensex pack. Indian Hotels Company — which operates Taj group of hotels — was down 2.48 per cent, Tata Chemicals fell 1.65 per cent, Tata Investment Corporation 1.22 per cent, Trent 0.34 per cent and Tata Power Company 0.98 per cent.

Tata Sons to challenge reinstatement of Cyrus Mistry, says will take appropriate legal recourse

Story continues below this ad

However, Tata Consultancy Services (TCS) stock rose marginally by 0.07 per cent, Tata Metaliks gained 2.07 per cent, Tata Communications 1.68 per cent, Tata Elxsi 1.53 per cent, Tata Steel 1.16 per cent and Titan Company 0.09 per cent. Mistry was the chairman of major companies in the Tata group before his removal as Tata Sons chairman in October 2016.

The Sensex, meanwhile, rose 206 points on Wednesday. After rallying to its record intra-day peak of 41,614.77, the 30-share BSE Sensex settled 206.40 points, or 0.50 per cent, up at its all-time closing high of 41,558.57. Similarly, the broader NSE Nifty advanced 56.65 points, or 0.47 per cent, to its record closing high of 12,221.65.

Explained

Domestic markets positive on hopes of new govt steps

M&M was the top gainer in the Sensex pack, surging 3.37 per cent, followed by Sun Pharma 2.53 per cent, Asian Paints 1.88 per cent, ITC 1.70 per cent, HDFC Bank 1.58 per cent and HCL Tech 1.46 per cent.

HUL, SBI and Yes Bank fell 1.79 per cent each. NTPC, PowerGrid and Bajaj Finance also ended in the red.

Story continues below this ad

Meanwhile, the rupee rebounded from early lows to close one paise up at 70.97 against the US dollar on Wednesday, helped by a record-breaking run in equity markets and weak crude oil prices. A stronger dollar in overseas markets after solid US economic data had weighed on the rupee sentiment in early trade, forex traders said. —With PTI