Tata Group stocks rally up to 14% as Tata Sons approves N Chandrasekaran's reappointment

Shares of Tata Group companies gained on Thursday, September 17, after sources said the Tata Sons board approved N Chandrasekaran's reappointment as chairman for another five years. Among Tata group stocks, Tata Chemicals gained close to 14%, hitting its highest level in 19 weeks at ₹832, but has given up some gains since and is currently trading at ₹775.10, still up almost 6%.
Tata Motors Passenger Vehicles shares also rose more than 6% to their highest level in 16 weeks at ₹319.8, while Tata Investment Corporation gained as much as 6% to its intraday highs at ₹733.50. Tata Consultancy Services jumped more than 3% on the news, reaching highs of ₹2,263.60 and also contributing to the recovery in the Nifty.

However, the stock has since pared all the gains and is currently trading almost flat at ₹2,193.50. According to sources cited by Reuters, Chandrasekaran has accepted the reappointment as Tata Sons chairman for another five years. The resolution was put to a vote, with Noel Tata voting against Chandrasekaran's reappointment, sources said.
All other board members voted in favour of the resolution. Chandrasekaran's current term as Tata Sons chairman is due to end in February 2027. He had earlier decided not to seek another term, but the Tata Sons Nomination and Remuneration Committee had sought his reconsideration amid the company's leadership and regulatory transition.

The board's decision comes shortly after the Reserve Bank of India rejected Tata Sons' application to surrender its registration as a core investment company, bringing the holding company closer to a potential stock market listing. Tata Sons had sought deregistration to avoid the listing requirement applicable to upper-layer core investment companies.
The RBI's decision had already triggered a sharp rally in several Tata group companies earlier this week, particularly those that hold stakes in Tata Sons. Tata Chemicals, Tata Motors Passenger Vehicles and Tata Investment were among the biggest beneficiaries of that development.

With inputs and news break by Shereen Bhan