Shares of Tata Group companies are in focus, and rallied by up to 20 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes.
Tata Investment Corporation, Tata Elxsi, Tata Teleservices (Maharashtra), TRF, Nelco, Rallis India, Tejas Networks, and Tata Technologies rallied between 4 per cent to 20 per cent. However, Tata Motors, Titan Company, Trent, and Tata Consultancy Services are trading lower by up to 2 per cent on the BSE. In comparison, the BSE Sensex was up 0.18 per cent at 81,846 at 02:02 pm.
According to media reports, Tata Sons, the $410-billion holding company of the Tata Group, has voluntarily surrendered its certificate of registration to the Reserve Bank of India (RBI) after repaying over Rs 20,000 crore in debt to remain an unlisted company. This decision allows Tata Sons to maintain its status as a closely held company, sidestepping the need to list its shares on the stock exchange, which would have been required under RBI regulations had the debt remained.
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Among the individual stocks, Tata Investment Corporation of India (TICL) surged 20 per cent to Rs 7,406.15 on back over 10-fold jump in average trading volumes. The stock had hit a 52-week high of Rs 9,744.40 on March 7, 2024.
TICL, a non-banking financial company (NBFC) registered with the Reserve Bank of India under the category of Investment Company, is primarily engaged in the business of investment in listed and unlisted equity shares, debt instruments and mutual funds etc. of companies in a wide range of Industries. The company, a systemically important NBFC, has been classified by Reserve Bank of India as a middle layer NBFC.
TICL in its FY24 annual report said the equity markets are expected to offer high returns in the long run, supported by improving global and domestic landscapes. “Our outlook remains optimistic, grounded in factors such as softened inflation, early adjustments in monetary policy rates, and reduced crude oil prices,” the company said.
Debt investments are anticipated to perform favourably, especially with expectations of interest rate cuts. Bond investors stand to benefit from the potential rise in bond prices as yields decline, particularly in long-term Indian Government Bonds (IGBs).
The real estate, after years of sluggish returns, is gradually improving, offering growth opportunities for investors. Gold, as a hedge against inflation and uncertainty, continues to hold its value in investment portfolios. Strong demand from central banks, coupled with geopolitical risks and currency de-dollarisation trends, supports the case for including gold in diversified portfolios, the company said.
Shares of Tata Elxsi soared 15 per cent to Rs 8,850 on back of heavy volumes. A combined 4.6 million equity shares representing 7.4 per cent of total equity of a global design and technology services company have changed hands on the NSE and BSE.
Tata Technologies shares were up 4 per cent to Rs 1,095 after 12.5 million equity shares of the company changed hands on the BSE. The names of the buyers and sellers are not ascertained immediately.
Shares of Nelco hit a multi-year high of Rs 1,271.95, rallied 13 per cent on the BSE in intra-day trade. In eight trading days, the stock zoomed 46 per cent. It had hit a record high of Rs 1,700 on March 24, 1992.
Nelco in exchange filing said the movement in the price/volume of the securities of the Company is purely due to market conditions, and absolutely market driven and the Management of the Company is in no way connected with any such movement in price/volume.
“The Company has not withheld any material information/event that have a bearing on the operation/performance of the Company which include all price sensitive information, etc. required to be disclosed pursuant to Sebi regulation,” Nelco said on clarification on price movement.
