NEW DELHI. Tata Group bearing knee-jerk reaction on most Tata Group stock counters on Tuesday after Tata Sons’ board in a sudden move on Monday removed Cyrus Mistry from the post of chairman and appointed Ratan Tata as an interim chairman.
The mystery behind the exit of Cyrus Mistry remains, while some analysts and company watchers are trying to link it to performance. Mistry had taken over charge in December 2012.
Now, the biggest question at present is – what should investors do with Tata Group stocks? Well, the good part is that with Ratan Tata back in the saddle, things will not turn ugly for the salt-to-software conglomerate.
The development, which came after market hours on Monday, saw the 48-year old Mistry being dropped after being at the helm since December 28, 2012, and was replaced by Ratan Tata as the interim chairman.
So should you use this opportunity to exit Tata Group stocks or are they a good contrarian bet? Can these scrips underperform given the uncertainty within the conglomerate?
Analysts say though the development can see a knee-jerk reaction in the stocks in the immediate term, there should not be any fundamental impact of Cyrus Mistry’s exit on the performance going ahead.