Tata Group shares slide up to 4% as Chandrasekaran opts out of reappointment

Mumbai: Shares of Tata Group companies fell as much as 4% on Wednesday following Tata Group chairman N Chandrasekaran's decision not to seek reappointment, with D-Street reacting to the uncertainty around the group's leadership and succession.

Analysts, however, said the group's businesses expected to remain fundamentally strong and continue to pursue their respective growth plans despite the leadership transition.

TCS fell the most, down 3.7%, followed by Tata Technologies, Tata Consumer Products, Tata Elxsi, TRF, and Nelco, which fell 2-3%. The Nifty 50 ended 0.15% lower at 24,436 on Wednesday.


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"The fall in these stocks following the news was expected, particularly given the chairman's significant role in the growth of TCS, Indian Hotels and Tata Motors," said Shrikant Chouhan, head of equity research, Kotak Securities.

However, Chouhan said, he believes the times have changed, and while the new chairman's strategy will be important, these businesses are now strong enough to operate with less oversight. "While the Tata Group has faced challenges over the past year, particularly around succession and business issues, we believe the worst of the uncertainty is behind us and there could be some recovery in the stocks in the coming days," he said.

Of the 26 listed Tata Group companies, 23 fell on Monday's close. Only Tata Motors, Tata Chemicals and Voltas ended the day higher. "Sentimentally, after the announcement, stocks reacted negatively to the development and we think there may some overreaction from the street," said Sunny Agrawal, head of research at SBI Securities. "We feel fundamentally in the medium to long term various businesses will continue to deliver on the internal growth targets and respective companies leadership will continue to drive business growth."

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Agrawal said that strong leadership and clarity at Tata Sons will act as a catalyst to accelerate the growth. Shares of Tata Group companies have seen mixed performance this year. While Tata Elxsi, TCS, Rallis India, Tata Teleservices and TRF have declined 23% to 29% so far in 2026, while Nelco, Tata Technologies and Titan have moved up between 26% and 35%.