Tata Group Stocks Witness Sharp Decline, Causing ₹2.50 Lakh Crore Loss
TATA Stock: The beginning of fiscal year 2025 proved disappointing for the Tata Group. The group's stocks experienced a market capitalization (market cap) loss of ₹2.50 lakh crore in this fiscal year. The Tata Group's combined market capitalization fell by ₹2.56 lakh crore compared to ₹30 lakh crore in fiscal year 2024, settling at ₹27.46 lakh crore.
15 Stocks Contribute Significantly to the Decline
Fifteen Tata Group stocks are responsible for this significant loss, with the largest loss incurred by TCS (Tata Consultancy Services), India's largest IT company. Tata Motors and Titan Company followed closely behind. Other companies experiencing declines include Artsen, Automobile Corporation of Goa, Automotive Stampings and Assemblies, Rallis India, Tata Chemicals, Tata Communications, Tata Consumer Products, Tata Elxsi, Tata Power Company, Tata Technologies, and Tata Teleservices (Maharashtra).
Heavy Losses for TCS Investors
Investors in Tata Consultancy Services (TCS), a flagship Tata Group company, lost ₹1.39 lakh crore in market cap during fiscal year 2025. By March 19th, the company's share price had fallen by approximately 10%. This weakness in the IT sector is attributed to concerns about US economic growth and a decrease in discretionary spending. Although the company's fourth-quarter results will be released in April, the ninth quarter of fiscal year 2025 saw a 9% increase in net profit and a 7% increase in sales.
Significant Setback for Tata Motors
Tata Motors witnessed a 31% decline in its share price during fiscal year 2025, resulting in a ₹79,027 crore reduction in its market cap. India's largest EV car manufacturer suffered heavy losses due to weak earnings, regional challenges, and weak demand for JLR in China and the UK. The growing influence of Tesla also disappointed Tata Motors investors in the domestic market.
Titan Company Also Affected
Titan Company also dealt a significant blow to investors, experiencing a ₹64,755 crore drop in its market cap. Additionally, stocks of other companies such as Tata Chemicals, Automotive Stampings, TRF, Rallis India, and Tata Consumer Products are also experiencing declines.
