A day after Cyrus Mistry was named Ratan Tata's successor as the Tata group chief, the stocks of a number of companies from the salt-to-software conglomerate soared higher on the bourses today -- adding more than $one billion to the combined market value of the business house.
Blue-chips like TCS, Tata Motors, Tata Steel and Tata Power rallied in a strong market, helping the group attain a market capitalisation of close to Rs 3,80,000 crore (about $73 billion).
This marked a gain of more than Rs 7,200 crore (about $1.4 billion) in the group's market value from the yesterday's level.
The biggest contributor was the group's most valued firm TCS, also the country's biggest IT firm, while significant gains were also seen in the valuation of companies like Tata Motors, Tata Power, Tata Steel and Tata Global Beverages.
After the market closed yesterday, Tata group announced that Cyrus Mistry would become Chairman of the group's holding company Tata Sons in December 2012, after Ratan Tata retires from the position.
Mistry, Managing Director of the $2.5 billion Shapoorji Pallonji Group (SP Group) that holds over 18 per cent stake in Tata Sons as its single largest shareholder, has said he would disassociate himself from his family businesses.
Shares of two listed companies from the SP group, Forbes & Company and Gokak Textiles, also moved higher today.
In the Tata group, the stocks that moved higher today also included Indian Hotels, Rallis, Tata Chemicals, Trent, Voltas, Tata Communications, TRF, Tata Investment Corp, Taj GVK, Benares Hotels and Oriental Hotels.