Tata Stocks : The stock market witnessed a remarkable surge in the market capitalization of Tata Group stocks, totaling an impressive Rs 85,000 crore in just four days. This surge propelled the combined market capitalization of all 24 listed Tata stocks to Rs 31.6 lakh crore, according to data sourced from ACE Equity.
Retail investors showed significant interest in Tata stocks throughout the week, leading to a bullish trend across the Tata Group’s portfolio. Notably, the top four best-performing stocks in the BSE500 pack belonged to the salt-to-software conglomerate. Tata Chemicals emerged as the top gainer with an astounding 36% return, followed closely by Tata Investment Corporation, which recorded a remarkable 28% upside.
Apart from Tata Chemicals and Tata Investment Corporation, other Tata stocks also witnessed substantial gains. Rallis India saw a surge of 14% in its share price, while Tata Power added 13% to its market value. The spotlight remained on Tata Motors as well, which experienced a 6% increase in its stock price amidst news of demerger.
While fundamental factors contributed to the bullish sentiment, a significant portion of the rally in Tata stocks was fueled by speculation surrounding the potential listing of Tata Sons IPO. Despite the RBI’s deadline for listing being one-and-a-half years away in September 2025, investors displayed heightened interest in Tata Chemicals, anticipating it to be the biggest beneficiary of the IPO.
However, reports suggest that the Tata Group is exploring various legal and financial avenues to circumvent the listing of Tata Sons.
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The market scenario during the week saw the Sensex closing 0.5% higher, with mid and small-cap stocks underperforming. The BSE Smallcap index ended 2% lower, while the BSE SME IPO index witnessed a 3.5% decline. This trend indicated a growing awareness among investors regarding the frothiness in smaller stocks amid retail-driven enthusiasm.
Banking stocks enjoyed favor in light of the improved macroeconomic outlook, while uncertainties in the global market led to weakness in the IT sector.
Vinod Nair of Geojit Financial attributed the rally in auto stocks to the extension of the Fame II scheme and higher demand forecasts for passenger vehicles. Metal and capital goods stocks also witnessed a surge, driven by faster-than-expected economic growth forecasts for the current fiscal year. However, corrections were observed in small and mid-cap stocks due to overvaluation concerns, leading to profit booking and increased demand for large-cap stocks.
On the weekly chart, Nifty formed a small bullish candle with a lower shadow, indicating buying at the support level around 22,200. The weekly strength indicator RSI suggested a positive bias, being above its respective reference lines.
Rupak De of LKP Securities suggested that the support level is expected to hold at 22,400, advocating for a buy-on-dips strategy as long as the index remains above this level. A decisive move above 22,500 could further stimulate buying interest, potentially pushing the index towards 22,700 in the short term.
The remarkable rally in Tata stocks and the overall market sentiment reflect the dynamism and resilience of India’s stock market. Despite challenges and uncertainties, investors remain optimistic about the future, demonstrating the potential for continued growth and prosperity in the Indian economy.