Shares of various Tata Group companies experienced significant gains in Thursday’s trading session. Notably, Tata Chemicals, Rallis India, Tata Power Company, Nelco, Tata Teleservices (Maharashtra), and Tata Investment Corporation witnessed rallies ranging from 5% to 13% on the BSE, accompanied by heavy trading volumes.
Additionally, Tata Elxsi, Tata Steel, Trent, Voltas, Tata Motors, and Tata Consultancy Services also registered gains in the range of 1% to 4%. Meanwhile, the S&P BSE Sensex recorded a marginal increase of 0.06%, reaching 74,131 at 12:22 pm.
Intra-day trading saw several Tata Group stocks reaching new record highs, including Tata Chemicals, Tata Consumer Products, Tata Investment Corporation, and Tata Steel.
Optimism surrounding Tata Group stocks has been fueled by expectations that the listing of Tata Sons will unlock value and streamline the complex group holding structure, according to a report by Business Standard. Last year, the Reserve Bank of India (RBI) categorized Tata Sons as an upper-layer non-banking financial company (NBFC), mandating its listing on exchanges by September 2025.
In today’s intra-day trade, Tata Chemicals (TCL) surged by 15% on the BSE, reaching a new high of Rs 1,349.70. The average trading volumes for the stock saw a significant increase, jumping over 8-fold. A total of 32.5 million equity shares were traded on the NSE and BSE combined.
With a market value estimated at Rs 7 trillion for Tata Sons, Tata Chemicals’ 3% stake in Tata Sons translates to approximately Rs 21,000 crore, which accounts for nearly 62% of its current market capitalization.
The stock price of Tata Chemicals has surged by 27% in the past two days and by 44% over the last six trading days. This significant increase comes after Fitch Ratings revised the outlook on Tata Chemicals’ long-term foreign-currency Issuer Default Rating (IDR) to ‘Stable’ from ‘Positive’ while affirming the rating at ‘BB+’.
Tata Investment Corporation’s shares continued their upward trajectory, hitting the upper circuit for the sixth consecutive day and closing at Rs 9,744.40, marking a new high on the BSE. Over the past month, the stock has surged by an impressive 74%, while in the calendar year 2024 so far, it has witnessed a staggering increase of 128%.
Tata Investment Corporation, along with its subsidiary, a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI) as an Investment Company, primarily focuses on investing in listed and unlisted equity shares, debt instruments, and mutual funds across various industries.
As of December 31, 2023, Tata Sons Private Limited, along with other promoter shareholders, held a significant 73.4% stake in Tata Investment Corp. The company’s management remains optimistic about the Indian equity markets, expecting double-digit returns for Indian equity indices in FY24.
Tata Investment Corp’s portfolio comprises a diverse mix of listed Tata and non-Tata equities, along with unlisted equities and fixed-income securities. With India identified as a bright spot, the company’s investment strategy reflects a balanced approach across various asset classes.
Disclaimer: The opinions and investment insights provided are intended solely for informational purposes and should not be construed as financial advice. Bystox.in strongly advises users to consult certified financial experts or professionals before making any investment decisions. We emphasize the importance of conducting thorough research and seeking personalized guidance tailored to individual financial goals and circumstances. Please be aware that investing involves inherent risks, and past performance is not indicative of future results. Bystox.in does not assume any responsibility or liability for the accuracy, completeness, or reliability of the information provided. Users are encouraged to exercise caution and diligence in their investment endeavors. Remember, your financial well-being is paramount, and seeking expert advice is highly recommended.