Sensex tumbles 600 points as Chandrasekaran's exit hits Tata stocks, TCS down 5%

Sensex fell over 600 points and Nifty slipped below 24,300 on Wednesday as Tata Group stocks tumbled after N Chandrasekaran resigned as Tata Sons chairman. TCS was the biggest loser, falling over 5%.Tata Group stocks led the decline, with Tata Consultancy Services (TCS) plunging 5.21%. Tata Motors Passenger Vehicles fell 3.08%, Tata Steel declined 2.26%, Titan dropped 2.37% and Tata Consumer Products slipped 1.54%.Benchmark indices came under heavy selling pressure on Wednesday, with the Sensex falling more than 600 points as investors reacted to N Chandrasekaran’s decision to step down as Tata Sons chairman.The Sensex fell 620.31 points, or 0.79%, to 77,533.94, while the Nifty 50 declined 196.30 points, or 0.80%, to 24,275.40 at around 11:36 am. Tata Group stocks led the decline, with Tata Consultancy Services (TCS) plunging 5.21%. Tata Motors Passenger Vehicles fell 3.08%, Tata Steel declined 2.26%, Titan dropped 2.37% and Tata Consumer Products slipped 1.54%.The selloff came after Chandrasekaran resigned as Tata Sons chairman, although he will continue in the role until his current term ends in February 2027. WHY ARE TATA GROUP STOCKS FALLING?The immediate trigger for the selling was the leadership uncertainty at Tata Sons, the holding company of the Tata Group.Chandrasekaran said on Wednesday that he had decided not to offer himself for reappointment when his current term ends on February 20, 2027. He also asked the Tata Sons board to begin the succession process soon to ensure a smooth transition. His decision follows a six-month deadlock over his reappointment.In February, a proposal to extend Chandrasekaran’s tenure by another five years was not carried through after one Tata Sons board member did not support it. Chandrasekaran said he chose to defer the decision in the absence of unanimous support.Six months later, he said, there was still no resolution.“It has been 6 months since that Board meeting, and no resolution has been reached till date,” Chandrasekaran said in his statement.The leadership uncertainty is significant for investors because Tata Sons controls more than 30 companies, including TCS, Tata Motors and Air India. Tata Sons is 66% owned by Tata Trusts.TCS LEADS SELL-OFFTCS was the biggest loser among Tata Group stocks and one of the biggest drags on the Nifty.The stock fell 127.40 points, or 5.21%, to Rs 2,318.30, after touching an intraday low of Rs 2,300.10.Tata Motors Passenger Vehicles was another major loser, falling 3.08% to Rs 336.90. Tata Steel declined 2.26% to Rs 183.99, while Titan fell 2.37% to Rs 5,006.30.Tata Consumer Products dropped 1.54%, while Tata Power also traded lower.The weakness was not limited to Tata stocks. Infosys fell 1.98%, Apollo Hospitals declined 2.07%, Mahindra & Mahindra dropped 1.33% and Adani Enterprises slipped 1.52%.SENSEX, NIFTY UNDER PRESSUREThe selling spread across several heavyweight stocks. HDFC Bank declined 0.85%, Reliance Industries fell 0.96%, Larsen & Toubro dropped 0.91% and Bajaj Finance lost 0.99%.Bharti Airtel, ICICI Bank, Axis Bank and Kotak Mahindra Bank were also among the stocks trading lower.There were some pockets of strength. Hindalco rose 3.14%, SBI gained 0.95%, Nestle India advanced 0.99%, Maruti Suzuki climbed 0.26% and Bajaj Auto rose 0.31%.Higher crude oil prices added another layer of pressure to Indian equities. Brent crude was trading near $90 a barrel as uncertainty around the Middle East continued to weigh on the market.Higher oil prices are a concern for India because the country imports most of its crude requirements. A sustained rise in crude prices can increase the import bill, put pressure on the rupee and add to inflationary pressures.Investors are also watching upcoming US inflation data for clues about the Federal Reserve’s next interest-rate move.The US consumer and producer inflation readings could influence expectations around the Fed’s rate path. Investors are particularly focused on whether inflation is easing enough to allow the US central bank to cut rates.A softer US inflation reading could support expectations of lower interest rates and improve sentiment towards emerging markets such as India.- EndsPublished By: Koustav DasPublished On: Aug 12, 2026 12:44 IST