One of the stocks of the Tata group demonstrated significant growth for investors in a single day. On Tuesday, Tata Chemicals shares reached the upper circuit, showing a 20% increase, and reached the level of 734.90 rupees.
The main reason cited for this sharp rise is the Reserve Bank of India's (RBI) decision to reject Tata Sons' application to withdraw its NBFC license. This means that Tata Sons is now obliged to list on the stock markets.
The RBI has established certain rules for NBFC companies, according to which top-tier NBFCs must be listed on the market. Since Tata Sons is a top-tier NBFC, it needs to undergo listing. However, Tata Sons is not interested in entering the stock market, so it applied to the RBI requesting the revocation of its NBFC license. Nevertheless, this application was rejected.
Growth is also observed among other Tata group stocks. Tata Investment Corporation shares grew by more than 13%. Following this, Tata Investment and Tata Chemicals became the highest-growing stocks in the Nifty 500 index. Tata Motors PV shares also showed an increase of 4.5%.
Over the last six months, this Tata group stock has increased by 11.88%. Over the year, it lost 25%, and over five years, it saw a decline of 13%. The company's market capitalization is $187.22 billion.