Tata Group shares in focus after Cyrus Mystry quits; TCS up 2%

Tata Group stocks such as Tata Consultancy Services (TCS), Tata Steel, Tata Motors, Tata Power, Tata Chemicals and Indian Hotels were trading mixed on Tuesday after ousted Tata Sons chairman Cyrus Mistry quit from the boards of these six Tata companies. The move came after a bitter eight-week boardroom battle.

Reacting to the development, TCS and Tata Power gained over 2% on the BSE in the late morning deals in an otherwise flat market. TCS was the top Sensex gainer and added as much as 2.38% to Rs 2343 on BSE. Tata Power surged 2.71% to Rs 79.35. Tata Steel, however, slumped over 1% to Rs 405, while Tata Chemicals, Tata Steel and Indian Hotels were trading flat. 

In an interview to Business Standard, Mistry promised to take his fight against the Tatas to a legal forum but did not give details. 

“In the past eight weeks, I saw a lot of coercive action from the Tatas towards shareholders, debt holders and employees, which is making all the three uncomfortable. In various representations to shareholders, I had said it was not about me or about my position. My resignation proves that," Mistry said. CLICK HERE FOR THE FULL INTERVIEW

He would, however, continue to remain a director on the board of Tata Sons. The announcement of Mistry’s resignation came after he attended a “routine” Tata Sons board meeting during the day. 

Monday’s board meeting brought Mistry and his former mentor, Tata, in the same room for the first time (since October 24) but they did not speak to each other, according to sources.