Shares of Tata Group companies, including Tata Steel, Tata Power Company and Indian Hotels, bounced back up to 27 per cent from their respective early morning lows on the back of the heavy volumes on Friday. All these stocks had hit their multi-year lows in the early morning trade today.
Tata Sons, the promoter company of Tata group, on Thursday bought shares worth Rs 531 crore in the four group companies in a bulk deal on the National Stock Exchange (NSE).
Tata Steel moved higher by 11 per cent to Rs 320, rebounding 25 per cent from the day’s low on the NSE. The stock had hit multi-year low of Rs 255 in the early morning trade. A combined 29 million shares, representing 2.6 per cent of total equity of the company, have changed hands on the NSE and BSE.
Tata Sons, on the other hand, bought 7.74 million shares or 0.69 per cent stake, worth Rs 222 crore, in Tata Steel at an average price of Rs 287 per share. The name of the sellers could not be ascertained immediately.
Further, Tata Power Company moved higher by 6 per cent to Rs 42.85, bouncing back 18 per cent from the day’s low today. Indian Hotels, too, was up 5 per cent to Rs 116, recovering 21 per cent from the intra-day low of Rs 96 on the NSE.
Tata Sons bought Rs 177 crore worth of shares in Indian Hotels at an average buying price of Rs 107. The promoter, on the other hand, bought 13.87 million shares worth Rs 53 crore in Tata Power, bulk deal data shows.
Thus far in the calendar year 2020, Tata Steel (down 39 per cent), Tata Power (down 28 per cent) and India Hotels (down 24 per cent) have underperformed the markets till Thursday. The Nifty50, in comparison, was down 21 per cent during the same period.