MUMBAI: Stocks of most of the Tata Group companies traded well, and gained 1-3 per cent during intraday trade on Thursday, despite speculations of heavy impact after the National Company Law Appellate Tribunal ’s (NCLAT) ruling in favour of Cyrus Mistry on Wednesday. TCS, Tata Motors, Tata Global and Tata Chemicals gained 2-3 per cent during the intraday trade. TCS, the major contributor for the Group, was on the major focus that gained 3 per cent.
Tata Motors, second major contributor in terms of dividend to Tata Sons and which was also under discussions during the legal battles, closed the day in a positive note with 3 per cent gain. Other subsidiaries such as Tata Steel, Tata Power and Tata Chemicals were at a gain of 1 per cent. Tata Steel, Tata Global Beverage and Indian Hotels were also almost flat during the intraday trade, signalling traders’ confidence in the Tata Group companies.
In a major development in the Tata Sons-Cyrus Mistry case, the NCLAT on Wednesday ordered the restoration of Cyrus Mistry as the executive chairman of Tata Sons. It also held that the appointment of N Chandrasekaran as the executive chairman of the group was illegal. However, it had granted four weeks time for the company to appeal against the order.
Following the order, it was being expected that the stocks may open lower on Thursday, but they remained stable, say market participants. The time NCLAT granted for Tata Sons to appeal against the order is seen as a positive for the stocks. Market participants are also of the view that reinstatement of Mistry would not be acceptable to the shareholders of the group companies.