₹1.5 trillion market-cap drop in 11 Tata group stocks; What should you do?

"Tata Group shares have rallied in the last three years and outperformed stocks of other groups in Indian markets, said Kranthi Bathini, equity strategist, WealthMills Securities

Tata group stocks came under selling pressure in Monday's trade, skidding up to 19 per cent in intraday deals amid market selloff as traders and investors dumped counters, especially Tata Motors, against the backdrop of US tariff impact on its subsidiary Jaguar Land Rover (JLR).

 

The fall in the 11 Tata group stocks — Tata Consultancy Services (TCS), Tata Steel, Tata Motors, Titan Company, Tata Consumer Products, Trent, Tata Communications, Tata Elxsi, Indian Hotels, Tata Chemicals and TRF — together shaved off over ₹1.5 trillion in market capitalisation (market-cap) amid a massive selloff on Dalal Street on Monday. 

Tata group companies are under pressure due to sectoral headwinds, according to Chokkalingam G, founder of Equinomics Research. He added that the affected businesses broadly fall into three major categories — technology, steel, and automobiles — each facing headwinds from the global slowdown, trade tensions, or underlying structural challenges. 

 

Around 10:40 AM, shares of Tata Motors slipped 11.6 per cent, logging a 52-week low at ₹542.55 per share. The fall in the stock came after the company's arm Jaguar Land Rover decided to pause its shipments to the US as it considers how to mitigate the cost of President Donald Trump's 26 per cent tariff. Tata Motors faces domestic competition and tariff issues in Europe, Chokkalingam said. 

 

Meanwhile, shares of Trent lost 19 per cent after the company posted its Q4 business update. In the quarter ended March 31, 2025, the company reported 28 per cent growth in revenue to ₹4,334 crore, compared to ₹3,381 crore a year earlier. Its revenue for the full year jumped 39 per cent.

 

Revenue growth in Q4FY25, however, is sharply lower than the 36 per cent revenue growth logged in the previous quarter of FY25 (Q3FY25) which, analysts said, could be due to a further moderation in same-store sales growth (SSSG) (from a high single digit in Q3FY25).  

 

TCS shares, slipped 7.2 per cent, logging a 52-week low at ₹3060.25 per share on BSE as information technology (IT) companies fear recession after US President Donald Trump imposed tariffs. The IT arm was expected to grow 2 to 3 per cent but may now see negative growth, Chokkalingam said.   

Tata Steel shares have declined 11.5 per cent, logging an intraday low at ₹124.2 per cent on BSE, hovering near its 52-week low at ₹122.6 per share. As many as 5.47 million shares of the company changed hands on BSE. Tata Steel is hit by global slowdown and trade wars, Chokkalingam said. 

 

Other Tata group stocks such as Tata Communications, Tata Elxsi, Tata Consumer Products, Indian Hotels, Tata Chemical and Titan also lost between 2 per cent to 6 per cent, around 10:40 AM.

 

"Tata Group shares have rallied in the last three years and have outperformed other group stocks in the Indian markets, said Kranthi Bathini, equity strategist, WealthMills Securities 

 

Bathini added: Today we are witnessing an unprecedented global sell-off with a lot of uncertainty around the trade. So we can see some profit booking that's taking place in these groups. 

Fundamentally, these group companies are strong with good business models, Bathini said. “They went through different business cycles. They have strong management. But in times like this, the relative valuation comparison does come into the picture. That is the reason for some kind of softening of the PE multiples at this point.”

 

For longer term investors, one can start buying quality Tata group stocks amid correction, he said. He advised buying Tata Consumer, Trent and India Hotels during these “deep” corrections.