Why This Tata Group Stock Fell More Than 3% Today?

Tata Steel Ltd Stock has fallen over 3.39% in morning trade today. The current market price of the stock is Rs 962 apiece on NSE with a loss of 3.26%. The stock has gained 1.75% on BSE today and the current market price of the stock is Rs 961.90 apiece in morning trade today. The stock has given a negative return of 11% in 7 days, negative return of 12.15% in one-month, negative return of 21% in 3 months, and positive return of 92% in five years.

1. Why there is a fall of over 3 % in a single day in Tata Steel Ltd stock?

Today the stock of Tata Steel Ltd has gone ex-dividend. Today is the ex-dividend date of this stock. Earlier, Tata Steel had declared a dividend of 525% on May 4, 2022. its filing dated May 4, 2022 the board of directors of Tata Steel said, "Recommended a dividend of Rs. 51 per fully paid-up Ordinary Share of ₹10/- each (510%) to the shareholders of the Company for the Financial Year ended March 31, 2022. Further, in respect of the outstanding partly paid-up Ordinary Shares of the Company on which call money remains unpaid as on the date of book closure for the dividend payment, the dividend will be paid in proportion to the amount paid-up on such shares, i.e., ₹12.75 per partly paid-up Ordinary Share of ₹10/- each (paid-up ₹2.504 per share) (510%)."
Therefore, there is a decline in the stock of Tata Steel as investors who buy the stock today will not get a dividend.

2. Tata Steel Ltd performance in FY2022

The company achieved highest ever annual production and deliveries in India. The production crossed 19 million tons for the first time, 13% YoY increase. It achieved highest ever deliveries at 18.27million tons, up 6% YoY. Meanwhile, domestic deliveries crossed 15.6 million tons with broad based improvement across segments.

3. Dividend History of Tata Steel Ltd

Tata Steel has a great dividend track report and it has regularly declared dividend for the last 5 years. Today, the dividend yield is 5.12% if we look at the current share price of the stock. The market capitalization of the stock is Rs 117,489 crore at the time of writing the story.