Multibagger Tata Investment shares drop 14% in 3 days. Here’s what is triggering the downfall

The stock has reversed tracks following its climb to a 52-week high on March 7 (Thursday) after a 28% rally in the counter on news of the , which also had a rub-off impact on many other stocks including , and .

The RBI rule mandates Tata Sons, the holding company of the salt-to-software group, to get listed by September 2025 as it has been classified as an upper-layer NBFC.

Even after the three-day rout, Tata Investment Corporation shares’ returns over the past 12 months are at a staggering 324% which is a significant outperformance over the broader Nifty with 30% returns during this period.

The investment arm of conglomerate Tata Group has seen a turnaround in its stock's fortunes despite an absence of analyst rating and minuscule ownership by institutional investors.

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Tata Investment shares are currently trading above their 50-day and 200-day simple moving averages (SMAs) while its momentum indicators suggest that it is currently trading in a strongly overbought zone. Its MFI as reported by Trendlyne stood at 90.1 on Wednesday while RSI hovered near the 70 mark A number above 70 indicates that the stock is in an overbought zone while below 30 means it is in an oversold territory.

Erstwhile known as Investment Corporation of India, it is a non-banking financial company primarily involved in long-term investments such as equity shares and equity-related securities. The company became a subsidiary of Tata Sons Pvt Ltd in February 2008 and Tata Sons, together with other Tata Group companies, hold approximately 73.38% of the paid-up capital of Tata Investment Corporation.

Tata Investment’s stake in several group companies has gone up this year, with stocks such as Tata Chemicals, and rising more than 30%. The company’s rally is mainly to catch up with the value of its holdings, said Omkar Kamtekar, research analyst at Bonanza Portfolio.

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