Shares of Tata Group companies are hitting headlines today as they experience a massive rally on the Bombay Stock Exchange (BSE). Some stocks soared as high as 20%, while others faced a slight dip.
Despite the mixed bag of performances, the overall market spirit is high. The BSE Sensex itself saw an uptick of 0.18%, hovering around 81,846 at 2:02 PM.
Tata Sons Repays Rs 20,000 Crore Debt
Tata Sons, the $410-billion giant at the heart of the Tata Group, has made headlines for a significant reason. The company voluntarily gave up its registration certificate to the Reserve Bank of India (RBI). This step came after it paid off more than Rs 20,000 crore in debt. By doing so, Tata Sons can retain its status as a private company and avoid listing its shares on the stock exchange, which would be required under RBI rules if the debt had stayed.
Stock Movements of TATA
Tata Investment Corporation (TICL) Surges 20%
Tata Investment Corporation of India (TICL) skyrocketed by 20% to Rs 7,406.15, fueled by a major boost in trading volume—ten times the average, to be precise. This isn’t the stock’s first high; it reached a 52-week peak of Rs 9,744.40 on March 7, 2024.
TICL is an RBI-registered non-banking financial company (NBFC) focused on investing in a range of financial instruments, including listed and unlisted equity shares, debt instruments, and mutual funds across various industries. The company’s FY24 annual report highlights an optimistic outlook for equity markets, thanks to improving global and domestic conditions. It also expects debt investments to perform well with anticipated interest rate cuts, and suggests real estate is on the upswing after years of sluggish returns.
Tata Elxsi Jumps 15%
Shares of Tata Elxsi jumped by 15% to Rs 8,850 due to heavy trading volumes. A combined 4.6 million shares, making up 7.4% of the total equity, changed hands on the NSE and BSE.
Tata Technologies Gains 4%
Tata Technologies saw its shares rise by 4% to Rs 1,095 after a whopping 12.5 million shares changed hands on the BSE. Unfortunately, we don’t have the names of the buyers or sellers at the moment.
Nelco Hits Multi-Year High
Nelco shares skyrocketed by 13% to Rs 1,271.95, reaching a multi-year high. The stock has surged 46% in just eight trading days, rekindling memories of its record high of Rs 1,700 on March 24, 1992.
Nelco clarified in an exchange filing that the company’s recent price and volume movements are due to market conditions and not influenced by any internal management actions. They reassured investors that they have not withheld any price-sensitive information that could impact the company’s operations or performance.
Other Tata Stocks See Mixed Performances
While some Tata stocks are on a roll, others like Tata Motors, Titan Company, Trent, and Tata Consultancy Services saw declines of up to 2% on the BSE.
Conclusion
Overall, Tuesday turned out to be a remarkable day for many Tata Group stocks, with varying performances indicating diverse investor sentiments. The significant debt repayment by Tata Sons and its decision to remain an unlisted entity were pivotal points, influencing market behaviors and stock prices.
Stay tuned for further developments as we continue to track the market.
