India’s most valuable conglomerate, the Tata Group, is witnessing a massive stock market rout, with its 24 listed companies collectively losing ₹8.2 lakh crore in market capitalization. The primary driver behind this sharp decline is the aggressive selling by Foreign Institutional Investors (FIIs), which has significantly impacted the group’s blue-chip stocks.

In the last six months alone, the Tata Group’s market capitalization has shrunk by 24%, with major stocks like Tata Consultancy Services (TCS) and Tata Motors facing the biggest losses.

Tata Group’s Market Capitalization Decline

At its peak in September 2024, Tata Group’s market valuation stood at ₹34.77 lakh crore. However, as of today, it has dropped to ₹26.5 lakh crore, reflecting broad-based weakness across IT, automotive, retail, and consumer goods sectors.

Biggest Losers in the Tata Group’s Selloff

TCS Faces Major Selloff Amid IT Slowdown

Market Cap Loss: ₹3.67 lakh crore
Stock Price Drop: 22.5% in six months

TCS, India’s second-largest company by market capitalization, has seen a significant drop due to:
Slower global economic growth affecting client spending
Tariff uncertainties impacting outsourcing businesses
AI-driven productivity shifts leading to cost-cutting in IT budgets

Brokerage View:

• InCred Equities has revised TCS’s target price due to weak demand.
• Target price set at ₹3,925, offering 12.7% upside from the current ₹3,483.

Tata Motors Plunges 42.78% Due to Weak Demand

Market Cap Loss: ₹1.7 lakh crore
Stock Price Drop: 42.78%

Tata Motors is facing multiple headwinds, including:
Weak demand for Jaguar Land Rover (JLR) in China & UK
Concerns over US tariffs on European-made cars

Brokerage View:

• Morgan Stanley has an ‘equalweight’ rating with a target of ₹853.
• CLSA has upgraded Tata Motors to ‘outperform’ with a target of ₹930.
• Emkay Global has set a higher target at ₹950, while Motilal Oswal has a conservative target of ₹755.

Retail & Consumer Stocks Under Pressure

Trent (Westside, Zudio):
Stock down 29.7%, ₹74,000 crore market cap lost

Titan (Jewelry & Watches):
Stock down 15%, ₹47,700 crore market cap lost

Tata Consumer Products (Tata Tea, Tata Salt):
Stock down 20.38%, ₹24,000 crore market cap lost

Tata’s consumer-facing businesses are struggling amid:
Weak discretionary spending
Higher input costs due to inflation
Declining footfalls in retail stores

Tata Power, Tata Technologies & Tata Elxsi Hit Hard

Tata Power: ₹29,000 crore market cap wiped out (-21%)
Tata Technologies: ₹16,000 crore lost (-37.72%)
Tata Elxsi: ₹15,000 crore lost (-31%)

The decline in Tata Technologies and Tata Elxsi reflects:
Lower demand for tech & engineering services
AI-led efficiency cutting into digital transformation spending

Hospitality Stocks Buck the Trend – Indian Hotels Soars

While most Tata stocks are in deep red, hospitality stocks have outperformed:

Indian Hotels (Taj Group) gained ₹9,700 crore, up 10%+
Benares Hotels surged 46%

Why?
Post-pandemic travel boom
High occupancy rates & strong earnings growth

Experts Say Market Correction Is a ‘Long-Term Buying Opportunity’

Despite the selloff, top analysts remain bullish on Tata Group stocks for long-term investors.

Christopher Wood, Global Head of Equity Strategy, Jefferies:
"India is still the best structural story in Asia and globally. This correction is technical, not a macroeconomic crisis."

However, he warns that Indian stocks could remain under pressure if the US market enters a deeper correction.

What Should Investors Do?

Tata Motors

Morgan Stanley Target: ₹853
CLSA Target: ₹930
Emkay Global Target: ₹950
Motilal Oswal Target: ₹755

Investor Takeaway:

• Short-term risk due to US tariffs & JLR weakness
• Long-term growth potential in India’s EV market

TCS

InCred Target: ₹3,925 (12.7% upside)

Investor Takeaway:

• Tariff-related uncertainties pose risks
• AI-driven changes could impact IT services demand
• Still a fundamentally strong business with stable cash flows

Should You Buy the Dip?

Best Buy Opportunities (Long-Term Perspective):
Tata Motors (Post-US Tariff Clarity)
TCS (Once IT Demand Stabilizes)
Indian Hotels (Ongoing Tourism Boom)

Sectors to Be Cautious About:
Retail (Trent, Titan) – Discretionary spending under pressure
Tata Tech & Tata Elxsi – AI impact & slower digital spending

Tata Group Stocks in 2025 – Crisis or Opportunity?

The ₹8.2 lakh crore market cap erosion in Tata Group stocks is significant, but experts view it as a technical correction rather than a fundamental problem.

Key Triggers to Watch:
US market movements – If US stocks fall, Indian equities may remain under pressure.
Tariff decisions on autos & IT – Any clarity on US import tariffs could drive recovery.
Retail & Consumer Demand – If discretionary spending revives, stocks like Titan & Trent could bounce back.