N Chandrasekaran to not seek re-appointment: Tata Group stocks sell-off with TCS dropping 5%

Tata Group stocks sold off on Wednesday, August 12, in response to the news of Tata Sons Chairman N Chandrasekaran announcing he will not be seeking reappointment once his terms ends in February 2027.

Shares of Tata Consultancy Services Ltd. (TCS), the biggest group company fell over 4% after the newsbreak, followed by those of Tata Steel, Tata Motors Passenger Vehicles, Indian Hotels, which also fell between 1.5% to 3%.



TCS still continues to remain the biggest company of the Tata Group, commanding over a third of the overall market capitalisation of Tata Sons, which is currently at just over ₹25 lakh crore.

There were two exceptions, Tata Chemicals and Tata Investment Corporation, which saw a sharp spike, but soon gave up the gains. These two companies generally react to news surrounding the potential listing of Tata Sons.

Vikas Khemani of Carnelian Asset Management told CNBC-TV18 that while there is some uncertainty with regards to who will be the successor of N Chandrasekaran, the Tata Group has survived many such structural transitions before and it will navigate and adapt to this one as well.

Khemani also added that how N Chandrasekaran's successor navigates the changes currently sweeping across the sector will be critical.

This is breaking news and will be updated with more stories.