The Bombay Stock Exchange Sensex ended 87.66 points lower at 28,091.42, while the National Stock Exchange Nifty fell 17.65 points to close at 8,691.30 on Tuesday. Both indices were pulled down by Tata stocks, which declined following news of Cyrus Mistry's removal from the post of Tata Sons chairman.
While shares of Tata Steel fell by 2.65% to Rs 414.75, Tata Consultancy Services shares fell by 1.14% to Rs 2,400. Tata Motors and Tata Power also declined by 1.34% to Rs 552.30 and 1.40% to Rs 82.25, respectively. Other companies of the Tata Group, including Tata Coffee, Tata Chemicals and Tata Elxsi also traded lower after markets opened for the day.
Meanwhile, oil and gas companies such as GAIL India, Petronet LNG Ltd, and Oil and Natural Gas Corporation also traded lower as the BSE Oil & Gas Index fell by 0.78% in morning trade. Shares of Idea Cellular fell by 2.08% to Rs 75.20 after the company on Monday announced an 88% drop in consolidated net profits to Rs 91.46 crore for the September quarter because of higher expenses. Overall market movement remained negative as 1,446 shares declined while 1,344 rose.
The decision to remove Mistry was announced at a board meeting, during which a selection committee was also formed to choose the next head of Tata Sons. Interim chairman Ratan Tata, Amit Chandra, Venu Srinivasan, Lord Kumar Bhattacharya and Ronen Sen are part of the committee, which was constituted in accordance with the Articles of Association of Tata Sons. The panel has four months to select the next chairman.