Tata Group stocks witness heavy selling after removal of Cyrus Mistry

Mumbai: The Tata group stocks witnessed heavy selling pressure on the bourses as cautious investors trimmed their exposure following the unexpected removal of Cyrus Mistry as the chairman of Tata Sons on Monday.

While the shares of Tata Metaliks slumped 4.97 per cent, the shares of Tata Steel, Tata Communication, Tata Coffee and Tata Chemicals suffered losses in the range of 2 – 3 per cent.

However analysts pointed out that the broader markets are awaiting more clarity on the future strategy of the Tata Group before taking a final call on whether to make fresh buys or exit specific stocks.

“The stocks didn’t see any significant correction with majority of them closing the day with just 2-3 per cent losses. It is because of the fact that these companies day-to-day operations are not getting impacted because of the change of guard at the top.

All the group companies are being run by professional management, which is giving a certain degree of confidence to long-term shareholders. But the important thing to watch out here is whether the group will change its strategy or continue with the existing policies,” said Dipen Shah, Kotak Securities.