Tata Chemicals dips 2.5% on Kenya exit buzz; co. issues clarification

Tata Chemicals' share price declined 2.5 per cent after the company found itself in limbo with the Kenyan President, William Ruto.

 

Ruto on Thursday ordered the ousting of Tata Chemicals Ltd. and is said to be looking for fresh investors to take over its century-old mining rights for minerals that are processed into soda ash.

 

As of 10:19 AM, the company’s share price was down 1.8 per cent to ₹629.55; meanwhile, Nifty 50 was trading 0.33 per cent higher at 23,952.95. Intraday the stock has fallen 2.55 per cent to ₹625

 

In response to Ruto’s action, Tata Chemicals issued a statement saying the company "submitted all the information and documents sought by the Kenyan government". The Tata company also noted that it is "compliant with applicable regulations and is waiting for the government to review its response". READ IT HERE

 

 

The president said he asked the company "to pack and go" because it has been exporting soda ash rather than using it at local facilities to make glass and chemicals.

 

"Tata has held mining rights for 100 years, yet it has not built anything in Kajiado," Ruto said of the county that's home to Lake Magadi, the resource from which the Asian firm has extracted minerals to make soda ash for two decades. "They take our resource to India and other places." Vipin Kumar, AVP research at Globe Capital Market said that Tata Chemicals is going through a pattern of lower highs and lower lows below its key short- and long-term moving averages after hitting an all-time high in March 2024. Multiple resistances are placed on the higher side, with immediate resistance in the ₹680–₹700 spot range. "The overall chart structure remains negative. Moving forward, a decisive close below the ₹615 spot level could drag it toward ₹570 in the near term. Consolidation around these support levels would be a positive development, potentially signaling the start of a base formation," he added.

  

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