Mistry ouster: Rs 21,000 crore wiped out from Tata stocks

Tata Group overall commands market capitalisation of over $125 billion

Key Tata Group firms lost over Rs 10,000 crore (Rs 100 billion) for the second day, on Wednesday, extending the total erosion in market capitalisation to more than Rs 21,000 crore (Rs 210 billion) following Cyrus Mistry's ouster as Tata Group chairman.

These firms had lost about Rs 10,700 crore on Tuesday.

Shares of Tata Motors dipped 4.27 per cent, Tata Steel slumped 4.01 per cent, Tata Power lost 2.06 per cent and TCS fell by 0.07 per cent on BSE on Wednesday.

Besides, Tata Metaliks slipped 3.85 per cent, Tata Elxsi dropped 3.15 per cent, Tata Global Beverages (3.10%), Tata Chemicals (2.83%), Tata Communications (2.68%), Tata Sponge Iron (0.57%) and Tata Coffee (0.42%).

Tata Group overall commands market capitalisation of over $125 billion (close to Rs 8.5 lakh crore), with software giant TCS alone accounting for Rs 472,301.73 crore.

In the stock market, the BSE benchmark Sensex too fell by 254.91 points to end at 27,836.51.

Mistry's family firm Shapoorji Pallonji Group has 18.4 per cent in Tata Sons - the holding firm of the group companies.

In the surprise development, the board of Tata Sons, where 66 per cent shares are held by philanthropic trusts endowed by members of the Tata family, ousted chairman Mistry, saying it was acting "for the long-term interest" of the firm.

His predecessor Ratan Tata has been made the interim chairman and a committee has been set up to look for a new head of the $100 billion conglomerate.

Sacked unceremoniously, a "shocked" Cyrus Mistry has levelled a series of allegations against Ratan Tata and contended that he was pushed in to a position of "lame duck" chairman and changes in decision making process created alternate power centres in Tata Group.