11 Tata companies lose over Rs 16,000 crore in market cap
Tata Sons removed Cyrus Mistry from chairman's post.
11 listed Tata Group of companies on Tuesday lost over Rs 16,300 crore in market capitalisation after Tata Sons removed Cyrus Mistry from chairman's post and instated Ratan Tata as interim chairman.
Commenting on the outlook of Tata Sons after Mistry's exit, V K Vijayakumar, Chief Investment Strategist, Geojit BNP Paribas, said, "The shocking removal of Cyrus Mistry from the Chairmanship of Tata Sons is a negative from the corporate governance perspective. But this is not likely to impact the performance of Tata companies. It is a fact that last year the group turnover declined and debt increased. But this is not a phenomenon confined to the Tata group alone".
Here's a look of the listed Tata Companies' market capitalization performance during the day.
Further, Vijayakumar said, "It has been clarified that the CEOs at the company level will continue and therefore individual companies are unlikely to be impacted. Tata Motors will continue to do well since the new launches are doing well and the pound depreciation is a major positive. The performance of TCS will be muted since the IT industry is facing headwinds. Tata steel is likely to do well since metal prices have recovered. Tata Global Beverages has been a laggard for quite some time now. The outlook for these companies is unlikely to be impacted by the decision to oust Mistry. From the market perspective nothing has changed. Good performers will be rewarded and poor performers will be punished by the market".