Tata Group Experiences Rs 90,000 Crore Market Value Drop on Monday

Synopsis

On April 7, Tata Group stocks plummeted by around Rs 90,000 crore amidst a global market downturn. Key companies like Trent and Tata Steel faced significant losses. The market cap for the group decreased during a turbulent trading day, reflecting broader economic concerns fueled by international trade tensions.

Key Takeaways

Tata Group lost Rs 90,000 crore in market value.
16 Tata companies were affected with a combined Rs 2.3 lakh crore drop.
Trent shares fell nearly 15% amid cautious Q4 outlook.
Tata Steel shares hit a two-month low, affecting the Nifty Metal index.
Global trade tensions contributed to the market decline.

Mumbai, April 7 (NationPress) The stocks of the Tata Group faced a significant downturn on Monday, resulting in a loss of approximately Rs 90,000 crore in market value during a widespread global market selloff.

A total of 16 companies under the Tata umbrella were impacted, seeing their overall market capitalisation decline by about Rs 2.3 lakh crore during intra-day trading.

By day’s end, the aggregate market cap was recorded at Rs 25.3 lakh crore. Among the most significant losers were shares of Trent Limited, Tata Steel Limited, Tata Technologies Limited, and Indian Hotels Co..

Trent, known for its apparel retail, experienced a drop of nearly 15 percent following analysts' cautious assessments regarding its fourth-quarter (Q4) performance.

Despite reporting a 28 percent year-on-year (YoY) increase in sales, this represented a slowdown from the 37 percent growth seen in the previous quarter.

The stock sank to a near one-year low, with a revised lower circuit limit, plummeting as much as 18 percent during trading.

Tata Steel shares hit their lowest levels in over two months, significantly impacting the Nifty Metal index, which fell 8.6 percent.

The broader metal sector faced pressure due to concerns over global commodity price volatility following aggressive tariff announcements by US President Donald Trump, raising fears of a trade conflict.

Tata Technologies, which specializes in product engineering and digital solutions, saw its shares decline nearly 6 percent to an all-time low of Rs 597 each.

Tata Motors also encountered a steep decline of almost 13 percent after its luxury arm, Jaguar Land Rover, declared a halt to exports to the US.

This decision was prompted by the new auto tariffs imposed by the US government. Although Indian auto manufacturers have limited exposure to the US market, Tata Motors may still be affected through JLR.

Conversely, other Tata entities such as Tata Consultancy Services (TCS), Tata Chemicals, and Titan Company remained comparatively stable, each declining by less than 2 percent during the intra-day session.