India's Tata shares fall as Chandrasekaran decides to step down

Business Recorder reported that Tata Group shares slid on Wednesday once N. Chandrasekaran revealed he will not stand for another term as head of Tata Sons. The announcement deepens uncertainty at the Indian conglomerate, which is already dealing with regulatory scrutiny and pricing pressures.

Tata Consultancy Services fell 3.9% and was the biggest loser on the Nifty, weighing on benchmark indexes. Tata Motors Passenger Vehicles closed 1.3% lower, while Titan and Tata Steel eased 0.6% and 1.1% respectively. The stocks did recover somewhat from their lows of the session.

According to Chandrasekaran, the board did not back him, after months of friction with Tata Trusts, the charity that holds 66% of Tata Sons. Disputes between the two sides cover a possible listing of Tata Sons, losses at Air India, a minority shareholder's planned exit and board seats. Analyst Ambareesh Baliga of Mumbai described the sell-off as a knee-jerk response, while a source speaking to Reuters said the disagreements were the only cause of the resignation.