Active Stocks
Fri Jun 14 2024 15:58:47
  1. HDFC Bank share price
  2. 1,597.45 1.05%
  1. State Bank Of India share price
  2. 840.20 -0.44%
  1. Tata Steel share price
  2. 183.05 0.30%
  1. ICICI Bank share price
  2. 1,105.10 -0.20%
  1. Kotak Mahindra Bank share price
  2. 1,717.00 -0.54%
Business News/ Markets / Stock Markets/  Tata Investment stock loses more than 20,000 crore in market capitalisation in just two weeks
BackBack

Tata Investment stock loses more than ₹20,000 crore in market capitalisation in just two weeks

The stock soared to an all-time peak of ₹9,756 on March 7 before undergoing a 38% correction, settling at ₹5,960 by the end of last week.

Tata Investment Photo: BloombergPremium
Tata Investment Photo: Bloomberg

Tata Investment Corporation Ltd. witnessed a 21% decrease this week following a 22% decline last week, the stock's performance has been notably bearish. Tata Investment stock, on Friday, hit 5% lower circuit for the ninth time in the past 10 trading sessions.

The stock soared to an all-time peak of 9,756 on March 7 before undergoing a 38% correction, settling at 5,960 by the end of last week. This sharp decline over 10 days translated into a staggering loss of nearly 20,000 crore in market capitalization. Consequently, the company's market cap dwindled from 49,365 crore on March 7 to 30,155 crore within a span of two weeks.

Also read: Multibagger stock: HEG skyrocketed over 105% in a year, up 365% in 4 years; should you still buy?

During the week when Spark Capital discussed the possibility of Tata Sons' potential listing by September 2025, the stock experienced consecutive upper circuits of 5%.

The likelihood of Tata Sons going public is slim, as the group explores strategies to comply with RBI regulations. Among the options considered are reducing group-level debt and restructuring entities like Tata Capital.

In addition, Tata Sons has divested 0.64% of its stake in the lucrative Tata Consultancy Services Ltd. (TCS), fetching approximately 9,000 crore.

Other Tata Group companies such as Tata Chemicals, currently under the F&O ban, along with Tata Consumer Products and TCS, have all witnessed a 7.5% decline this week.

Also read: With elevated room rates, Q4 to be another strong quarter for hotel sector, says Emkay; adds Lemon Tree, IHCL, Chalet

Tata Consumer shares saw a drop following CLSA's initiation of coverage on the stock with an underweight rating, citing stretched valuations and limited upside potential.

TCS's decline mirrors the broader pessimism surrounding technology stocks, exacerbated by Accenture's downward revision of revenue growth forecasts for the current financial year due to sluggish recovery in the discretionary segment.

 

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 25 Mar 2024, 06:27 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started