Tata Investment Corporation Ltd. has witnessed a significant downturn in its stock performance, with a 21% decrease this week following a 22% decline last week. The stock’s bearish trend was further highlighted by hitting the 5% lower circuit for the ninth time in the past 10 trading sessions.
After reaching an all-time high of ₹9,756 on March 7, the stock underwent a sharp correction of 38%, settling at ₹5,960 by the end of last week. This rapid decline over 10 days resulted in a substantial loss of nearly ₹20,000 crore in market capitalization. Consequently, the company’s market cap plummeted from ₹49,365 crore on March 7 to ₹30,155 crore within a span of two weeks.
During the same week when Spark Capital discussed the potential listing of Tata Sons by September 2025, the stock witnessed consecutive upper circuits of 5%.
However, the likelihood of Tata Sons going public seems slim as the group explores strategies to comply with RBI regulations, including reducing group-level debt and restructuring entities like Tata Capital.
Additionally, Tata Sons has divested 0.64% of its stake in Tata Consultancy Services Ltd. (TCS), fetching approximately ₹9,000 crore.
Other Tata Group companies, including Tata Chemicals (currently under the F&O ban), Tata Consumer Products, and TCS, have also experienced a 7.5% decline this week.
Tata Consumer shares saw a decline following CLSA’s initiation of coverage on the stock with an underweight rating, citing stretched valuations and limited upside potential.
The decline in TCS 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.
