Shares of most of the Tata group companies came under pressure for the third day in a row as the surprise removal of Cyrus Mistry as head of the conglomerate continued to impact the sentiment in the group's stocks.
In another development, stock exchanges BSE and NSE have asked six listed Tata companies - Tata Motors, Tata Steel, Indian Hotels, Tata Teleservices, Tata Communications and Tata Power - for a clarification, after Mr Mistry wrote to Tata Sons board members warning that the group faces a writedown of about $18 billion on many of these companies.
Tata Sons is the holding company of the Tata Group and holds the bulk of shareholding in these companies.
Markets regulator Sebi has also taken note of Cyrus Mistry's email and will look into any possible breach of corporate governance norms and listing regulations at the listed companies of the Tata group, officials said, news agency Press Trust of India reported.
Jyotivardhan Jaipuria, founder & CEO of Veda Investment Managers, said that the change of guard at the helm of the Tata group could impact the restructuring efforts in many of the group companies.
Industrialist Ratan Tata, who was Tata group chairman for 21 years before Mr Mistry took over in 2012, has been asked to hold charge as interim chairman till a replacement is found for Mr Mistry.
In early trade, Tata Steel shares were down 0.83 per cent, extending its 3-day losses to over 7 per cent. Tata Motors fell 2 per cent, taking its 3-day losses to 7.3 per cent.
Tata Power, which fell 1.4 per cent today, extended its losses to 4.7 per cent in three days.
The Tata Group's hospitality firm Indian Hotels, which operates the Taj group of properties, slumped over 5 per cent, extending its 3-day losses to 12.7 per cent.
Tata Teleservices fell 6 per cent, wiping out its gains over the past few days.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
