Tata Group shares bounce back after three days of hammering
28 October 2016
Tata group stocks today bounced back after three days of continuous decline, rising 5.6 per cent, on value-buying at lower levels. Tata Motors jumped 2.68 per cent (RS14.00) to Rs535.85, Tata Steel rose 1.85 per cent (Rs7.35) to Rs404.45 and Tata Power was down at a lower 1.38 per cent (Rs1.10) at Rs78.45. on the BSE
The gains followed news that Tata Group's Canadian subsidiary Tata Steel Minerals Canada is investing C$175 million along with the government of Quebec's investment entities, Resources Quebec (RQ) and Investment Quebec (IQ), respectively (See: Tata Steel to invest C$175 million in Canadian iron ore mine). The Tata Group company will start mining operations across Quebec-Newfoundland and Labrador Peninsula and set up multiple processing facilities, including a beneficiation plant, Tata Steel stated in a stock exchange filing.
At the close of trading on BSE, Tata Metaliks was up 5.55 per cent (Rs21.55) at Rs389.10, Tata Elxsi was up 3.93 per cent (Rs52.15) at Rs1,294, Tata Teleservices was up 3.93 per cent (Rs0.27) at Rs7.14, Tata Communications was up 1.35 per cent (Rs8.45) at Rs632.20, Tata Global Beverages was up 1.20 per cent (Rs1.65) at Rs139.60, Tata Coffee was up 2.02 per cent at Rs128.85 while Tata Chemicals rose 0.87 per cent to Rs543 and Indian Hotels gained 0.35 per cent (Rs0.40) at Rs115.40.
Tata Group flagship TCS continued to be in the red and was down 0.58 per cent (Rs14.00) at Rs2.399.25.
The group stocks had lost value over the last three days, taking the total market value erosion to over Rs26,000 crore, due to concerns over sudden ouster of Cyrus Mistry as the chairman of Tata Sons, the main holding firm for the group companies.
The stocks nosedived after revelations by ousted chairman that the group will have to write down Rs1,18,000 crore ($18 billion) of its assets across automobile, steel, telecom, hotel and chemicals businesses.
Tata Steel and Indian Hotels had yesterday said they have always made all relevant disclosures and have no further comments to offer following the comments made by Mistry that Tata group firms could face a potential $18-billion writedown.
Reports, meanwhile, said group chairman Ratan Tata is looking for a partner to buy out stake held by Cyrus Mistry's family.
The family trusts wants to ensure that if Mistry's family decides to sell its stake in the Tata Group company, the new investor will be a friendly party.