Share prices of all Tata group companies, barring Tata Teleservices (Maharashtra) Ltd and Tayo Rolls, closed in the red on Tuesday, after marketmen shorted the scrips.

Analysts were expecting a knee-jerk reaction in the short term due to uncertainty around the leadership after Cyrus Mistry’s exit.

According to analysts, however, the fall presents a good opportunity to pick up a few good Tata scrips.

“The uncertainty for shareholders rises as there will be many conjectures about why this happened,” said Paras Bothra, VP Equity Research, Ashika Stock Broking.

“However, one should remember that the Tatas are a well-managed, professionally run group with good corporate governance practices. There will, of course, be short-term volatility, but this could be used as an opportunity to pick up a few good Tata scrips as they are likely to clarify their stance in the near future.”

The change in leadership is unlikely to have any impact on the company’s stock price in the long term, reckon analysts.

“Over the long term, the new Chairman’s ability to focus on creating shareholder value by targeting profitability, as Mistry did, will be the key area to watch,” Edelweiss Research said in a statement.

Analysts concurred that it would take some time for the group’s scrips to recover from this episode, while hoping that the candidate finally chosen to take over from Ratan Tata would be of the highest quality befitting a leadership role in the group.

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