Shares of several Tata Group companies declined sharply on Wednesday after Tata Sons Chairman N Chandrasekaran resigned from the holding company, although he will continue until the end of his current term and will not seek reappointment.
The selling pressure was also influenced by broader weakness in equity markets, with rising crude oil prices affecting investor sentiment.
TCS, Titan among major Tata stocks under pressure
Tata Consultancy Services (TCS), the country’s largest software services exporter, witnessed the steepest decline among major Tata Group stocks. The stock fell up to 5%. It was trading at ₹2,345 per share, down 4.55% around 11:30 am.
Other Tata Group companies also witnessed declines. Tata Consumer Products dropped 1.6%, while Titan Company declined 1.3%. Tata Steel and Indian Hotels Company fell 1.13% and 1.04%, respectively.
Shares of Tata Technologies, Tata Investment Corporation and Tata Motors Passenger Vehicles also traded lower, declining up to 1%.
The decline in Tata stocks came as investors reacted to the leadership change at Tata Sons, the holding company that oversees the group’s major businesses.
Chandrasekaran’s exit follows reappointment uncertainty
Tata Sons had deferred a decision on Chandrasekaran’s reappointment as chairman in February after Noel Tata, chairman of Tata Trusts, raised objections over the move, according to earlier reports.
The two sides have reportedly differed over issues related to governance, business strategy and other matters concerning the group’s future direction.
Chandrasekaran joined the Tata Group in 1987 and rose through the ranks at Tata Consultancy Services. He became TCS chief executive officer in 2009 before taking charge as Tata Sons chairman in 2017.
His tenure as chairman saw the Tata Group expand into multiple sectors while pursuing major investments in areas such as aviation, electric vehicles and semiconductor manufacturing.
The resignation marks a significant leadership transition for Tata Sons as investors assess the possible impact on the group’s future strategy and governance structure.