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Cyrus Mistry's Ouster Wipes Out ₹21,000 Crores From Tata Stocks

Tata companies extended losses for a second day in a row on Wednesday

26/10/2016 7:19 PM IST | Updated 26/10/2016 7:41 PM IST
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India's Tata Group's interim Chairman Ratan Tata (2nd L) leaves Bombay House

Key Tata Group firms lost over INR 10,000 crore for the second day on Wednesday, extending the total erosion in market capitalisation to more than INR 21,000 crore following Cyrus Mistry's ouster as Tata Group chairman.

These firms had lost about INR 10,700 crore on Tuesday.

Shares of Tata Motors dipped 4.27 per cent, Tata Steel slumped 4.01 per cent, Tata Power lost 2.06 per cent and TCS fell by 0.07 per cent on BSE on Wednesday.

Besides, Tata Metaliks slipped 3.85 per cent, Tata Elxsi dropped 3.15 per cent, Tata Global Beverages (3.10 pc), Tata Chemicals (2.83 pc), Tata Communications (2.68 pc), Tata Sponge Iron (0.57 pc) and Tata Coffee (0.42 pc).

Tata Group overall commands market capitalisation of over USD 125 billion (close to INR 8.5 lakh crore), with software giant TCS alone accounting for INR 4,72,301.73 crore.

In the stock market, the BSE benchmark Sensex too fell by 254.91 points to end at 27,836.51.

Mistry's family firm Shapoorji Pallonji Group has 18.4 per cent in Tata Sons -- the holding firm of the group companies.

In the surprise development, the board of Tata Sons, where 66 per cent shares are held by philanthropic trusts endowed by members of the Tata family, ousted Mistry, saying it was acting for the "long-term interest" of the firm.

His predecessor Ratan Tata has been made the interim chairman and a committee has been set up to look for a new head of the USD 100 billion conglomerate.

Sacked unceremoniously, a "shocked" Mistry has levelled a series of allegations against Ratan Tata and contended that he was pushed into a position of "lame duck chairman" and changes in the decision making process created "alternate power centres" in Tata Group.

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