The day N
Chandrasekaran got appointed as
Tata Son's chairman, about Rs 20,000 crore of investor wealth in
Tata group stocks was eroded and benchmark indices ended flat. The reaction of majority of analysts was mixed.
It wasn’t a good day for Tatas. A 4% decline in
TCS shares resulted in market capitalisation falling Rs 18,000 crore. As a result, Titan fell 1.5%, while
Tata Motors,
Tata Steel and
Tata Elexi shares declined by half a percent each.
Trent was the biggest gainer among Tata stocks on Friday, soaring 8.7%.
Tata Coffee rose 6.12%. Tata Global, Indian
Hotels and
Rallis India gained 2% each.
Fund managers, who spoke to ET on condition of anonymity, said shares of smaller companies could have gained because of optimism that
Chandrasekaran would help these companies grow rapidly similar to the growth path of
TCS. They are, however, not confident if he would be able to turnaround some of the group's larger businesses given that his expertise mainly lies in the software sector.
"Running a software business is very different from the other businesses the Tata group is into. He ran TCS on a clean slate and was successful in turning it into a large company, but now the story is very different. Given what has happened to his predecessor, it is unlikely he will be able to take any hard decisions,, said a senior fund manager at a foreign asset management company,” analysts told ET.
Tata group has lost nearly Rs 75,000 crore of market capitalizations since former chairman
Cyrus Mistry's exit. The current market capitalisation of Tata group is '9.58 lakh crore.
Mistry's exit had unnerved investors as they fretted about the prospects of select debt-laden Group companies like
Tata Steel.
