New Delhi:
Tata Group stocks hurtled down by up to 4.2% after Cyrus Mistry was removed as chairman of India's largest conglomerate and replaced by his predecessor Ratan Tata in the interim.
Shares of Tata Steel declined by 4%, Tata Power 3.11%, Tata Motors 2% and Tata Consultancy Services 1.60% on BSE.
Among others, Tata Chemicals went down 4.18%, Tata Communications dropped 3.93%, Tata Coffee (3.89%) and Tata Global Beverages (3.47%). Shares of Tata Sponge Iron slipped 3.35% and Tata Elxsi shed 2.30%.
Read: Ratan Tata writes to PM Narendra Modi to inform him about Cyrus Mistry's exit
In a sudden and dramatic turn of events, Mistry was removed as chairman of India's largest conglomerate Tata Group on Monday and replaced by his predecessor Tata in the interim, a development that can trigger a confrontation between the single-largest shareholder and the company's founding family.
Mistry's family firm Shapoorji Pallonji Group has 18.4% in Tata Sons.
Read: Cyrus Mistry's journey as Tata Chairman: Suprise entry, abrupt exit
In the surprise development, the board of Tata Sons, where 66% 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.
The board named a five-member search committee, which includes Tata, to choose a successor within four months.
Read: Who is Cyrus Mistry? A brief profile of former Tata Sons chairman
