Tata Group shares rally; Tata Chem, Rallis, TTML, Tata Tech surge up to 15%

Shares of Tata Group companies were on a roll in Thursday's trade as Tata Chemicals, Rallis India, Tata Power Company, Nelco, Tata Teleservices (Maharashtra) and Tata Investment Corporation having rallied between 5 per cent and 13 per cent on the BSE amid heavy volumes.

Tata Elxsi, Tata Steel, Trent, Voltas, Tata Motors and Tata Consultancy Services were up in the range of 1 per cent to 4 per cent. In comparison, the S&P BSE Sensex was up 0.06 per cent at 74,131 at 12:22 pm.

Among the Group stocks, Tata Chemicals, Tata Consumer Products, Tata Investment Corporation and Tata Steel hit their respective record highs in intra-day trade.

 

According to a Business Standard report, this surge in optimism stems from the belief that the listing of Tata Sons will unlock value and lead to the simplification of the complicated group holding structure.

The Reserve Bank of India (RBI) classified Tata Sons as an upper-layer non-banking financial company (NBFC) last year, making it mandatory for the company to list itself on the exchanges by September 2025. CLICK HERE FOR FULL REPORT

Among individual stocks, Tata Chemicals (TCL) hit a new high of Rs 1,349.70 on rallying 15 per cent on the BSE in intra-day trade today.

The average trading volumes on the counter jumped over 8-fold today. A combined 32.5 million equity shares changed hands on the NSE and BSE.

Assuming a market value of Rs 7 trillion for Tata Sons, Tata Chemicals’ 3 per cent stake in Tata Sons is worth Rs 21,000 crore — nearly 62 per cent of its current market capitalisation.

In the past two days, the stock price of Tata Chemicals surged 27 per cent. In the past six trading days, it has zoomed 44 per cent after Fitch Ratings revised the outlook on TCL's long-term foreign-currency Issuer default rating (IDR) to 'Stable' from 'Positive' and affirmed the rating at 'BB+'. CLICK HERE FOR FULL REPORT

Shares of Tata Investment Corp were locked in the upper circuit for the sixth straight day, up 5 per cent at Rs 9,744.40, which was also its new high on the BSE. In the past one month, the stock has zoomed 74 per cent, while thus far in calendar year 2024, it has skyrocketed 128 per cent.

The company and its subsidiary, a NBFC registered with the RBI under the category of Investment Company, is primarily engaged in the business of investment in listed and unlisted equity shares, debt instruments and mutual funds of companies in a wide range of industries.

As at December 31, 2023, Tata Sons Private Limited, along with other promoter shareholders, held 73.4 per cent stake in Tata Investment Corp.

According to the company’s management, India remains a bright spot and remains optimistic that Indian equity indices may record double-digit returns in FY24. The company’s portfolio is a mix of listed Tata and diversified non-Tata equities, unlisted equities, and fixed income securities.