Tata Group loses $120 billion in market value amid tariffs, IT slowdown

Investor sentiment has taken a hit globally amidst US President Donald Trump’s tariff war and muted demand for IT services. While the knee-jerk reaction has been visible across markets, the Tata Group has borne the brunt of the shockwave.India’s largest conglomerate has seen its combined market capitalisation erode by $120 billion from its peak in September. From a valuation of $415 billion at the time, the group now stands at $296 billion — a correction that has taken place over the last 11 months, according to data compiled from Bloomberg.

The group’s crown jewel, Tata Consultancy Services (TCS), has been the biggest casualty, losing nearly $70 billion in market value since September last year. Tata Motors is the second-largest contributor to the group’s market cap erosion, with a decline of around $21 billion. Together, these two companies account for nearly 75% of the total erosion in market value over the past year.

Also Read: Tata Capital files updated DRHP for IPO of up to 47.58 crore sharesOther companies in the group, such as Trent and Voltas, have also seen substantial declines. Trent’s market capitalisation fell by $9.5 billion to $21.5 billion, while Voltas saw a $2.6 billion erosion, bringing its current valuation down to nearly $5 billion.
Data also shows that nearly all Tata Group companies have delivered negative returns since the beginning of the year, with seven of them falling between 20% and 30%.According to Nomura, the absence of any concrete TACO strategy on tariffs, combined with a weak US Nonfarm Payrolls report and stretched valuations, points to near-term risks of profit-booking and unwinding. “With tariff rates now set, all focus will be on how these impact the global economy and earnings outlook in the second half of 2025,” Nomura wrote in a client note.

Also Read: Tata Power sees slower demand recovery but maintains strong plant utilisation

Some cushioning may come from the weakening rupee. On Tuesday (August 5), the Indian currency weakened further, declining 4% over the last three months to close at a record low of 87.80 against the US dollar.

HDFC Bank believes a weaker rupee could offset some of the impact of the 25% US tariffs. “We estimate that for every 1% depreciation in the rupee (sustainably), this could offset 2–3 basis points of the impact from the higher tariffs on GDP growth,” wrote HDFC Bank economists, including Sakshi Gupta, in a recent note.

Despite the broader decline, a few Tata Group companies have managed to buck the trend. Shares of Rallis India have surged 27% since January. Other outliers include Tata Steel (up 16%), Tata Consumer Products  (up 16.4%), and Titan (up 5.1%) during the same period.

Also Read: Tata Motors appoints PB Balaji as Jaguar Land Rover CEO