On Monday, the Tata Teleservices share price declined by more than 4% as Indian stocks went into a major sell-off. The closely followed Nifty 50 declined by more than 1.73% and reached its lowest level since March 17th. TTML stock is trading at 176, about 41% below its highest level this year. This drop brings its total market cap to about 344 billion INR.
Tata Teleservices is a company owned by the giant Tata Group, one of the biggest companies in India. Other companies owned Tata Consultancy, Tata Steel, Tata Motors, Tata Chemicals, and Tata Power. The combined company is so large that it has been valued at more than $300 billion. It has thousands of employees globally and a presence in tens of countries.
Tata Teleservices is a publicly-traded company that offers a number of services in broadband, telecommunication, and cloud computing services. It offers its solutions mostly to companies in India. Some of its best-known clients are multinationals like Whirlpool, Kellogs, Wahl, and Solutions Infiniti, among others. These services include cybersecurity, voice, cloud computing, and marketing solutions.
While these are fast-growing industries, Tata Teleservices has struggled in the past few years. For one, competition from the likes of Reliance, Vodafone Idea, and Airtel has grown rapidly in the past few years. At the same time, the company’s revenue growth has stagnated while its losses have increased.
The weekly chart reveals that the Tata share price has been in a strong bullish trend since the pandemic started. The stock managed to move from a low of 1.80 to a high of 289 or about 15,847%. This increase made it one of the best performers in India and a favourite among retail investors. Now, the shares remain above the 25-week and 50-week moving averages while volume has been steady.
Therefore, there is a likelihood that the stock will rebound and retest its highest level on record at 289. However, this view will become invalid if it moves below the support at 92.
This post was last modified on %s = human-readable time difference 15:04