Tata Group stocks were hammered in the markets as six of its constituents—Tata Consultancy Services (TCS), Tata Steel, Tata Motors, Titan Company, Tata Consumer Products, and Trent—saw a combined erosion of Rs 1.28 lakh crore in market capitalisation. All six companies, part of the benchmark Nifty 50 index, witnessed sharp declines following heightened volatility as hefty reciprocal tariffs sparked fears of global trade war.
Trent emerged as the biggest loser on the index, with its shares plunging as much as 19 percent. The drop marked the company’s steepest single-day fall since March 2020, triggered by investor disappointment with its March quarter business update.
Although revenue rose 28 percent year-on-year to Rs 4,334 crore from Rs 3,381 crore, the figure fell short of expectations and trailed the company’s five-year compound annual growth rate (CAGR) of 36 percent. With this fall, Trent is now trading nearly 43 percent below its 52-week high, reflecting a sharp reversal in investor sentiment.
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Tata Motors also saw a significant decline of 12 percent after its subsidiary, Jaguar Land Rover, announced a pause in shipments to the US in response to the automobile import tariffs announced by US President Donald Trump. The move sparked concerns about future export disruptions and margin pressures.
Tata Steel followed closely, dropping as much as 11 percent as metal stocks took a hit across the board. Investor sentiment weakened further after the US imposed a 25 percent tariff on steel and aluminum imports earlier in March, with President Trump also suggesting a possible extension of tariffs to copper. While metals were not part of the latest round of reciprocal tariffs, investors remained cautious about the broader implications of an escalating trade war.
Shares of TCS fell 7 percent to hit a 52-week low of Rs 3,060 apiece. The decline was attributed to growing fears of a US recession and investor caution ahead of the company’s upcoming fourth-quarter earnings.
According to analysts at HDFC Securities, large IT firms are likely to report flat to marginally negative revenue growth for the March quarter, with expectations ranging from -1.8 percent to +0.1 percent on a sequential basis. The outlook has been dampened by weaker demand, reduced billing days, and lower discretionary tech spending.
The rout extended to Titan Company and Tata Consumer Products, which fell 5 percent and 6 percent respectively, as concerns over consumption demand and overall market weakness weighed heavily on the stocks.
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