Tata Trusts rift must be resolved soon to avoid long-term risks, says expert

3 months ago

Experts believe the growing differences within Tata Trusts need to be settled quickly. Prolonged disputes, they warn, could affect the Trusts’ functioning and long-term stability.

Transcript

00:00good afternoon and welcome to the market closing a collab show between business today and india

00:18today television i'm sakshi batra it's 3 p.m and we are here to get you all the market closing

00:22action first up let's take a look at what's hot in the corporate as well as the financial space

00:27even as india gears up to mark the first anniversary of ratan tata's passing away tomorrow

00:35the tata group faces rare internal turbulence top company leaders meet amit shah and nirmala

00:42sitaraman in new delhi to diffuse a rift within the tata trust investors watch with interest

00:49as tcs cancels its customary post results press briefing on thursday

00:53british prime minister kair starmer leads the biggest ever trade mission to india with over

01:02125 ceos entrepreneurs and educationists calls the free trade agreement which kicks in next year

01:10a major opportunity for both nations starmer will also meet prime minister narendra modi tomorrow

01:16phase one of the navi mumbai international airport to be inaugurated in a few minutes from now by the

01:30prime minister commercial flights likely to begin in december the new airport will drive the creation

01:35of a commercial hub as well as decongest the existing mumbai airport

01:39prime minister narendra modi repeats his swadeshi call at the india mobile congress of 2025 says india

01:52needs to boost its domestic mobile parts manufacturing to ensure security and sovereignty

01:57whose global investors says it is the best time to invest innovate and make in india

02:04even as it stocks rallied right ahead of the result season the overall market turns red after a four

02:13day rally autos psus as well as the energy and fmcg stocks lead the fall

02:17all right uh let's uh take it from the top the first story that we're tracking in the closing hour

02:31today even as the country's marked its first anniversary of ratan tata's passing tomorrow

02:35the news about the 180 billion dollar conglomerate is less than heartening deep divisions in tata trust

02:42with bodies which have two-thirds stake in tata sons the operating company behind the tata group

02:47also has forced the government to now call a meeting with noel tata and tata sons chairman

02:52and chandra shekharan the two other trustees last night now also the high level meeting which had taken

02:58place at home minister amit shah and finance minister nirmala sitaraman's uh attendance was definitely a very

03:06um you know intriguing one the meeting also comes amidst the reports of infighting among trustees

03:11over board appointments and governance issues as well meanwhile when we look at the tata group stocks

03:18today there are mixed signals that have come in tcs shares have rallied in trade today right ahead of

03:23the earnings tomorrow we're also on the other hand seeing stocks like tata consumer products fall

03:28in trade and therefore there are and tata motors also lagging behind it's the top loser so both the

03:33top winner and the top loser on the nifty stocks are from the tata group so you can clearly see

03:38tata motors down 2.3 percent this is also after the business update that we've been seeing tata power is

03:43down by one and a half percent meanwhile tcs titan right after the business update of titan those are

03:49the stocks that are holding up in trade but definitely it's the internal drift that spilled out

03:54in the open as well and now the government has clearly given signals to the tata group that one must

04:00ensure that the stability continues in the largest conglomerate in india let's quickly walk through

04:07the markets right now if we look at the nifty 50 and the current levels towards the last 20 minutes of

04:11trade we are holding on above 25 000 mark but remember we've slipped uh quite a bit from the day's

04:17high level as well we were hovering around 25 170 for a large part of the morning trade but now you see

04:24both the nifty and the nifty bank have actually slipped into the red of course led by a lot of sectors

04:29that are also reeling under pressure autos psu banks oil and gas fmcg and even the real estate

04:35sectors they're all down barring it as well as consumer durables rest all of the sectors are

04:40actually weak in trade top movers like we pointed out it's titan infuses tcs hcl tech and tech mahindra

04:46so large part of the winners today on the nifty is from the it space as well let's actually welcome

04:51our guest on board sharmila joshi market expert is now joining in on the program with us sharmila first up

04:56i want to take your view without much ado on the entire tata group as well and i want to understand

05:02from you how are you looking at this internal drift being seen out in the open now the government also

05:09taking part in the meetings of the big leaders from tata group and of course ensuring and the

05:15signals that have come out from the government meeting with tata group leaders is that one must

05:19ensure stability within the tata group and all the kind of rifts that are right now happening they

05:26must be resolved at the earliest as well how are you looking at the tata group it's one of the largest

05:30conglomerates that's listed in the stock exchanges most investors over the last historic investments they

05:37have you know had a large part of investments in tata group looking at the most stable group up until now

05:42but how are you looking at these fresh rifts and the concerns emerging oh yes obviously i think you

05:48know and one uh i mean just as uh we've been hearing i think uh you cannot emphasize enough that they need

05:54to be sort of sorted soon uh so i think the good part is that most of the managements are professional

06:00managements you know in the sense that uh every company of uh within the group seems to have a professional

06:06management is in place having said that if your majority shareholder is the tata trust and they

06:12are having differences within them then they need to be sorted uh because while the day-to-day running of

06:17the companies uh it may not get affected uh if these rifts sort of carry you know on for a longer period of

06:24time there could be disruptions so i think which is a simple reason that they need to be sorted and i think

06:30uh perhaps a couple of years back also we were hearing of uh you know certain uh noises and then

06:37uh it seemed to have gotten sorted with uh mr en chandra taking on as chairman of tata suns etc but

06:43you know they seem to have uh sort of come up again and uh perhaps this time uh they will find a better

06:49solution so uh keeping our fingers crossed but one cannot emphasize enough that they need to be sorted

06:55out at the soonest absolutely what would your approach be on stocks like tcs right ahead of the earnings

07:00tomorrow remember the customary press conference has also been cancelled at this point in time

07:05uh you know how should investors be really looking at this earning season at this point and of course

07:10tata capital ipo is still underway although it's fully subscribed on day three so there is so much of

07:15action within the group even on the business side even as uh these new developments come into form

07:21yeah so you know i think tcs uh at this point in time at least to my mind it will really react just on

07:26the basis of numbers and not so much on this news and you know very honestly i think for it this is

07:30there seems to have been some sort of a recovery in the last couple of weeks in a post that uh h1b

07:36news break etc uh but uh to my mind the bigger concern also going forward is going to be how these

07:43companies are really placed as far as uh they spend on ai is concerned and one has been hearing you know

07:49even in terms of new employee you know the new employment that they do fairly concerning stories uh so

07:55one who waits to hear uh what the numbers are like uh but to my mind perhaps uh the better play

08:01within it would be sort of uh mid-cap it companies where they've had large auto wheels or you know

08:07where the vertical that which is their biggest vertical is sort of more uh is sort of insulated

08:13from everything all the noise that's coming out of the us absolutely moving on now let's also talk

08:19about uh you know some of the other big developments that are taking place in the country right now uk

08:23prime minister care starmer is in mumbai for a two-day visit to deepen the uk india trade ties he's

08:29accompanied by a delegation of 125 uk ceos entrepreneurs and even university vice chancellors

08:36and even cultural leaders as well this trip remember follows the uk india free trade agreement that

08:42was signed in the month of july uh now we are given to understand that mr starmer will be meeting

08:46prime minister narendra moody tomorrow and will also attend the global fintech summit as well prime

08:51minister starmer has called the india uk fta deal the biggest deal for the uk since their exit from

08:58the european union to more to know more about this trade deal as well as the agenda of the meeting

09:03between the two prime ministers we're now joined by my colleague surbi who's joining in so we help us

09:08understand what is the key agenda for uk prime minister's visit right now and in fact we'll just go

09:13back to surbi in a bit but quickly uh if you could help us understand sharmila in the main time you

09:18know at this one point in time we're given to understand that us and india are at the brink of

09:24just trying to save their relationship which have got soured because of the tariffs that they have

09:28imposed on india it's already been six months and indian stock markets have only been reeling under

09:33this pressure but at the same time india is peddling forward to continue to boost the trade ties with

09:39other nations at this point in time how are you looking at trade uh and with respect to that how

09:45market's reacting

Tata Trusts rift must be resolved soon to avoid long-term risks, says expert

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