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    Tata Investment Strikes 5% Lower circuit

    Tata Investment Strikes 5% Lower circuit, Wiping Off nearly Rs 20,000 Crore of the Market Cap


    Finance Outlook India Team | Tuesday, 26 March 2024

    Tata Investment Corporation's performance has sharply declined as a result of its recent struggles with large losses. Following a startling 43% loss over the previous two weeks, the firm had a 5% reduction this week alone, showing a noticeably unfavorable trend in its shares. 

    For the ninth time in the previous eleven trading sessions, on Tuesday, March 26, 2024, Tata Investment stock saw a 5% down circuit, highlighting the severity of its declining trend.

    On March 7, the stock hit its all-time high of Rs 9,756. However, it saw a 43% drop and closed at Rs 5,663 on Tuesday, March 26, 2024. A startling loss of approximately Rs 20,000 crore in market value was caused by this precipitous decrease during a ten-day period. As a result, in only two weeks, the company's market capitalization dropped from Rs 49,365 crore on March 7 to Rs 30,155 crore. 

    The stock often approached upper circuits of 5% during the period when Spark Capital discussed listing Tata Sons by September 2025.

    Tata Sons' chances of going public, however, seem remote as the company struggles to come up with plans to abide by RBI rules. Restructuring companies like Tata Capital and lowering group-level debt are among the options being explored. 

    Furthermore, Tata Sons just sold off 0.64% of its profitable share in Tata Consultancy Services Ltd. (TCS) for a profit of almost Rs 9,000 crore. 

    Other Tata Group enterprises have also had difficulties during this turbulent period. This week, the stock values of TCS, Tata Consumer Products, and Tata Chemicals - all of which are now subject to the F&O ban - all decreased by 7.5%.



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