Tata Group shares extend fall; Indian Hotels down over 10% intra-day

Tata Power, Tata Comm, Tata Chem, Tata Global, Tata Coffee and Tata Investment were down 5%-13% in intra-day trade.

Shares of Tata Group companies remained under selling pressure for the third straight trading sessions, falling by up to 13% on Thursday in intra-day trade on BSE, after Tata Sons' ousted Chairman Cyrus Mistry said that Tata Group faces additional writedowns.

Indian Hotels Company, Tata Power Company, Tata Communications, Tata Chemicals, Tata Global Beverages, Tata Investment Corporation, Tata Coffee, Tata Teleservices (Maharashtra), Tata Metaliks, Tata Sponge Iron and Tinplate Company have fallen between 5% and 13% on BSE in intra-day trade.

At 09:43 am, the S&P BSE Sensex was down 0.27% at 27,763, after falling 0.42% in intra-day trade today.

In past three-trading sessions, most of the Tata Group stocks have plunged in the range of 5%-15%, against 1.5% decline in the benchmark index. Investors have lost nearly Rs 40,000 crore in Tata Group companies during the period.

Indian Hotels, the largest loser among Tata Group stocks, has fallen 13% to Rs 106 on BSE in intra-day trade.

Mistry said Indian Hotels Co, the passenger vehicle operations of Tata Motors, the loss-making European steel operations of Tata Steel, a telecoms venture and an Indian plant of Tata Power were "legacy hotspots". "A realistic assessment of the fair value (of) these businesses could potentially result in a writedown over time of about Rs 118,000 crores," he said in the emailed letter. CLICK HERE TO READ FULL REPORT.

The stock exchanges have sought clarification from the Tata Group companies with respect to news article appearing on Bloomberg on October 26, 2016 titled "Ousted Tata Chief Says Group Faces $18 Billion in Writedowns."

With respect to news article appearing on Bloomberg Tata Steel has clarified that the financial statement of the company are prepared on a going concern basis and present a true and fair view of the state of affairs of the company. As part of the preparation of financial statements, the value-in-use of the assets of the company is tested for impairment as per the Accounting Standards.

Accordingly, the company has currently noting further to comment or disclose with respect to matters appearing in the Bloomberg news report, Tata Steel said in a statement. LINK