Tata Group stocks, such as Tata Motors, TCS, Tata Steel, Tata Communications, Tata Metaliks, Titan Company and Tata Chemicals reacted sharply in early deals, and lost 1% – 3% a day after Cyrus Mistry was removed as the chairman of the Group. However, Tata Motors and Titan recovered some lost ground as trade progressed. By comparison, the benchmark indices – the S&P BSE Sensex and the Nifty 50 were trading 0.2% lower.
The development, which came after market hours on Monday, saw the 48-year old Mistry being dropped after being at the helm since December 28, 2012, and was replaced by Ratan Tata as the interim chairman.
So should you use this opportunity to exit Tata Group stocks or are they a good contrarian bet? Can these scrips underperform given the uncertainty within the conglomerate?