Mixed reaction from Tata group stocks

TCS closed 4% down to Rs 2,252 on the BSE

Tata Consultancy Services (TCS) closed four per cent down to Rs 2,252 on the BSE, a day after its managing director and chief executive officer N Chandrasekaran was elevated as the chairman of Tata Sons. 

However, the stock reacted more to the US president-elect Donald Trump's plan to revamp the H1-B visa programme that allows US firms to hire high-skilled foreign workers. Shares of Infosys, another information technology major, fell 2.5 per cent to close the day at Rs 975on BSE.

"TCS is a professionally managed company. So, one person moving would not make an incremental difference," said Sanjiv Bhasin, executive vice-president, markets, IIFL. 

“TCS stock not only reacted to the H1-B visa concerns but also saw profit booking after the earnings announcements,” he added. 

Chandrasekaran will also remain as the chairman on TCS board as it has been a custom for Tata Sons chairman to head the board of large Tata group firms.  

TCS, the country's most valued listed company, had a market capitalisation (m-cap) of Rs 4.43 lakh crore on Friday.