N. Chandrasekaran appointed Chairman of Tata Sons; Tata Group shares register decline

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.

The Indian stock market is witnessing a substantial decline. The Nifty index fell by 230 points, which is 1 percent, and is trading at the level of 23,255. Meanwhile, the BSE Sensex decreased by 0.87 percent or 637 points, reaching the mark of 74,265.32. Pressure is felt across all indices, with a notable sell-off in the metallurgical sector.

Of the top 30 BSE stocks, only 8 show a slight increase, while the remaining 22 stocks are experiencing a sharp decline. Shares of companies such as Bajaj Finance, Mahindra & Mahindra, and Tata Steel have lost over 2 percent of their value. The fall has also affected large-cap stocks, including L&T, HDFC Bank, and Reliance.

Due to strong pressure on the stock market, investors have incurred significant losses. The market capitalization of BSE dropped from 483 billion rupees to 500 billion rupees to 478 billion rupees. Furthermore, today, a lower price limit was set for 120 stocks on BSE, while 70 stocks traded at the upper limit. Out of 3,365 stocks, 117 are at their lowest level in 52 weeks, and 68 are at their highest.

Strong pressure is observed in several specific stocks. Hindustan Copper is trading at 508 rupees per share, down by 4 percent. Hindustan Zinc shares also showed a drop of 4 percent. Lodha Developers shares declined by 5 percent. Cochin Shipyard fell by 6 percent, and Godrej Properties and NACL shares also lost 6 percent. Dixon Tech shares decreased by more than 3 percent, while Muthoot Finance shares demonstrated a drop of about 4 percent.