Shares of Tata Group companies witnessed mixed moves on Friday, 18 September after the Tata Sons board approved a fresh five-year term for N Chandrasekaran as executive chairman and initiated the process for listing the group holding company.
Tata Chemicals shares fell more than 8%, while Tata Consultancy Services (TCS) declined around 4%. Tata Motors slipped 1.4%, and Tata Motors Passenger Vehicles dropped more than 3%. In contrast, Tata Capital shares gained around 2%.
The Tata Sons board approved Chandrasekaran’s reappointment for another five years on Thursday, despite his announcement last month that he would not seek another term after his current tenure ends in February 2027.
The development comes as Tata Sons faces renewed pressure from the Reserve Bank of India to comply with listing requirements applicable to an Upper Layer NBFC. The board has also set the process for listing Tata Sons in motion.
However, the Tata Trusts, which collectively hold a majority stake in Tata Sons, may challenge Chandrasekaran’s reappointment, adding another layer of uncertainty around the leadership transition at the group holding company.
Why Tata Sons is back in the spotlight
The Tata Sons board’s decision to move ahead with the company’s listing comes after the Reserve Bank of India (RBI) rejected its application to surrender its Certificate of Registration and exit the regulatory framework for shadow banks.
The central bank has directed Tata Sons to comply with regulations governing an Upper Layer NBFC, which include a requirement for the company to be publicly listed. The latest board decision therefore puts the listing process back at the centre of the Tata Sons story.
Tata Trusts oppose Chandrasekaran’s reappointment
While the board approved N Chandrasekaran’s reappointment as executive chairman for another five years, the decision has triggered a disagreement with Tata Trusts.
Noel N Tata, chairman of Tata Trusts and one of the Trust-nominated directors on the Tata Sons board, voted against the resolution at Thursday’s meeting. The Trusts subsequently argued that the resolution was legally invalid under Tata Sons’ Articles of Association.
According to the Trusts, the appointment or reappointment of the Tata Sons chairman requires a majority of the Trust-nominated directors to vote in favour. Since Noel Tata voted against the proposal, the Trusts said the resolution was a “legal nullity”.
The Trusts also maintained that Chandrasekaran’s 12 August decision not to seek another term had already become final. They said they had advised Tata Sons to begin the process of identifying his successor.
How Chandrasekaran went from stepping down to seeking another term
The latest development marks a significant reversal from Chandrasekaran’s position in August.
Tata Sons said its Trusts had unanimously passed a resolution on July 28, 2025, appreciating Chandrasekaran’s leadership since 2017 and proposing that he be reappointed as executive chairman for another five-year term after his existing tenure.
The Tata Sons board subsequently agreed in principle to extend his tenure in September 2025. It planned to seek the necessary formal approval at its February 2026 meeting.
However, the proposal remained unresolved. A February board meeting could not reach unanimity on the issue, and the matter was discussed again at meetings held in May and June.
Why Chandrasekaran had decided to leave
Against this backdrop, Chandrasekaran announced on 12 August 2026, that he would not offer himself for reappointment after his current term ends on 20 February 2027.
He said uncertainty over the leadership issue had continued for around six months following the inconclusive February board meeting.
The decision came after differences within the Tata group over whether he should continue in the role. Subsequently, the nomination and remuneration committee asked Chandrasekaran to reconsider his decision and supported another five-year term.
That set the stage for Thursday’s board meeting, where the issue of his continuation was taken up again.
What happens next?
The board’s approval now sets the stage for Chandrasekaran’s proposed second term, but the opposition from Tata Trusts could keep the leadership issue unsettled.
At the same time, Tata Sons is under regulatory pressure to meet the RBI’s requirements for an Upper Layer NBFC, including the public-listing requirement. The company is therefore dealing with two closely watched developments at once: its proposed listing and the dispute over its leadership.
Technical Views
Sudeep Shah, Vice President – Technical and Derivatives Research at SBI Securities, said Tata Chemicals witnessed a strong pullback over the past two sessions, with the RSI rising sharply to reflect the strong momentum. However, the stock faced resistance around its 100-week EMA zone of ₹805–810. Shah said only a decisive breakout above this zone could pave the way for the pullback to extend further in the near term.
Shah said TCS remains in a downtrend and continues to trade below key moving averages. The RSI is declining and has slipped below the 40 mark, indicating bearish momentum, while the MACD line remains below the zero line, signalling a weak bias. The 20-week EMA zone of ₹2,310–2,320 is likely to act as resistance, and the bearish bias is expected to persist as long as the stock trades below this zone.
Tata Capital has corrected nearly 11% from its high of ₹390 recorded on 6 August, Shah said. The RSI remains in a falling mode, indicating bearish momentum. The DI- is positioned above DI+ on the ADX indicator, suggesting continued control of bears over bulls. The 50-day EMA zone of ₹355–360 is likely to act as resistance, with the bearish bias expected to persist as long as the stock trades below this zone.
Shah said TMCV has corrected nearly 11% from its high of ₹488 recorded on 20 August. The MACD line has slipped below the zero line, indicating a bearish bias. The stock is currently trading close to its 100-day EMA, which could provide support. The ₹410–415 zone is likely to act as immediate support, and a decisive break below this range could lead to further weakness.
TMPV remains in a downtrend and continues to trade below key short- and long-term moving averages, Shah said. The MACD line is well below the zero line, reflecting a bearish bias, while the RSI remains below the 40 mark on the weekly chart, further reinforcing the bearish momentum. The ₹320–325 zone is likely to act as immediate resistance, and the bearish bias is expected to persist as long as the stock trades below this zone.
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