InvestorQ : Why did Tata Consumer stock rally so sharply on 24 February?
vaishnavi mhatre made post

Why did Tata Consumer stock rally so sharply on 24 February?

vidhya Laxmi answered.
9 months ago

Tata Consumer Products, formerly called Tata Global Beverages, has touched a record price of Rs.654 on 24 February after the NSE declared that the stock would be included in the Nifty-50 index from March 31. This normally brings in sharp flows from passive index funds and ETFs to rebalance in favour of the new index. Tata Consumer will replace GAIL in the Nifty index.

With this inclusion in the Nifty, Tata Consumer Products joins other FMCG peers like Hindustan Unilever, Nestle India and Britannia in the widely-tracked Nifty 50 index. The rebalancing is expected to lead to passive inflows of Rs.650 crore into Tata Consumer Products while GAIL will see an approximate rebalancing outflow of Rs.410 crore.

Tata Consumer recently merged the salt business of Tata Chemicals to become a true-blue consumer products conglomerate. The real potential of Tata Consumers would tested once the Tata Group Super-App is also up and working and which is supposed to integrate all the consumer facing businesses of the well diversified Tata Group.