Tata Chemicals shares zoom 29% in two days on Tata Sons listing hopes

Tata Chemicals Ltd shares rose over 7 per cent in Wednesday's trade as buying interest in Tata Group stocks continued following the Reserve Bank of India's (RBI's) rejection of Tata Sons' application to surrender its registration as a core investment company (CIC). The RBI's decision has brought the mandatory listing of Tata Sons, the group's holding company, back into focus.

Shares of Tata Chemicals have surged 29% in two sessions this week. The stock ended 20% higher at Rs 734.50 on Tuesday. In the current session, the stock opened at Rs 719.20 apiece against their previous close of Rs 734.50 on Wednesday. The stock touched a high of Rs 788.50 and a low of Rs 690.35 so far. The day's high marked a gain of around 7.35 per cent over the previous closing price.

The development had triggered a sharp rally across select Tata Group stocks in the previous session, with investors assessing the potential implications of a Tata Sons listing. Analysts had said the development could unlock value and improve transparency, while bringing the group's holding structure further into focus.

On Tuesday, Tata Chemicals had hit its upper price band of Rs 734.50 after gaining 20 per cent, while Tata Investment Corporation had climbed 15.24 per cent to touch Rs 750.30.

Tata Chemicals outlook

On Tuesday, Ravi Singh, Chief Research Officer at Master Capital Services, said Tata Chemicals could face resistance at Rs 745 in the near term and advised investors to consider exiting on a further bounce.

AR Ramachandran, Sebi-registered research analyst at Tips2trades, had described the stock as bullish but overbought on daily charts, with resistance at Rs 747. He had also said investors should keep booking profits, as a daily close below Rs 704 could trigger a fall towards Rs 643 in the near term.

Tata Investment outlook

For Tata Investment Corporation, Singh had said the stock had the potential to hit Rs 780 in the short term and suggested a buy-on-dips approach at Rs 680-690, with a stop loss of Rs 650.

Ramachandran had also described Tata Investment as bullish but overbought on daily charts, with resistance at Rs 735 and support at Rs 700.