Tata Consultancy Services, the group’s crown jewel, has led the losses, sliding almost 9% in seven sessions through Monday, stretching its losses past 29% this year. The company’s peers Infosys Ltd. and Wipro Ltd. have also slumped after Trump raised H-1B visa fees.
The slump in Tata conglomerate’s market value is largely similar to the decline in the broader Indian market but accentuated by heavy selloff in technology firms, said Ram Medury, founder and chief executive of of Maxiom Asset Management Pvt. “Tata Group remains a barometer of the Indian market, with its diversified presence across sectors.”
Tata Motors Ltd.’s shares closed lower on Monday, extending about 5% slide last week as a cyberattack crippled Jaguar Land Rover plants. That’s before the luxury carmaker JLR secured UK backing for a $2 billion loan to ease the strain on suppliers. JLR is separately raising a $2.7 billion loan from global banks, Bloomberg News reported.
Tata’s UK-based carmaker saw some pain earlier this year due to Trump’s trade war. JLR reported that £758 million of free cash outflow was impacted in the quarter ended June, according to a regulatory filing. The cyberattack comes months after JLR logged a positive net-cash position and achieved its goal of becoming debt-free on a net basis.
In total, shares of 12 of Tata Group’s 16 listed firms have dropped this year. Tejas Networks Ltd. has lost half its value, while Trent Ltd. and Nelco Ltd. have each shed nearly a third. India’s benchmark NSE Nifty 50 gauge closed 0.1% lower on Monday, marking its seventh consecutive day of drop.
