After a tribunal, on Monday, dismissed Cyrus Mistry’s appeal against Tata Group on his removal as chairman of Tata Sons, most of the group stocks ended higher in trade. Tata Consultancy Services (TCS), however, bucked the positive trend of other group stocks. After the announcement of the verdict in favour of Tata Sons, most of Tata Group stocks traded higher on the Bombay Stock Exchange. Tata Steel (0.49 per cent up), Tata Motors (0.81 per cent up), Tata Chemicals (1.61 per cent up), Tata Coffee (0.68 per cent up), Tata Communications (2.11 per cent up), Tata Elxsi (1.36 per cent up), and Tata Global Beverages Limited (3.07 per cent up) made solid gains.
Tata Investment Corporation (0.92 per cent up), Tata Metaliks (2.27 per cent), Tata Power Coltd (2.09 per cent up), Tata Sponge Iron (4.11 per cent up), and Tata Teleservices (Maharashtra) (0.22 per cent up) also made smart gains.
Tata Consultancy Services (TCS), however, closed lower by 1.34 per cent, ahead of its June quarter results scheduled to be declared on Tuesday.
The National Company Law Tribunal (NCLT) dismissed Mr Mistry’s plea challenging his removal as Tata Sons chairman in 2016. The tribunal did not find any merit in legacy issues raised by Mr Mistry against Tata Sons.
Mr Mistry said that he was disappointed with the verdict and “an appeal on merits will be pursued” against the ruling.
In his plea, Mr Mistry had said that his removal as Tata Sons’ chairman was illegal. He had also alleged mismanagement at Tata Sons, oppression of minority shareholders, a breakdown of corporate governance and excessive interference by Tata Trusts.
Meanwhile, in afternoon trade, the S&P BSE Sensex traded higher by 286.50 points at 35,944.36 and the broader Nifty50 was above 10,850 level.