what led to fall in the stock price of tata steel post tata-corus deal?

Answer 1

Tata Steel has acquired "CORUS" at a seemingly high price. Though, strategically the purchase of the steel maker makes good sense, the major positive changes in financials will be evident only on the long term of about 3 to 5 years time horizon. Compared to the long term additions to the bottom line of Tata Steel, in the near future , Tatas will have to raise lot of money to complete the acquisition of CORUS from almost all the sources. This will lead to suppressed bottom line of Tata Steel in short term.
Secondly, with the same amount of money, the Tatas could have easily set up greenfield/brownfield projects and may have achieved the same results vis a vis CORUS take over.
Most of the players in the share market think about short term trends and everybody naturally thinks that the Tata Steel scrip price will go down from current level at which time investors will be willing to purchase the same. As a result, everybody pressed sales of the shares at current levels.
For this reason, the stock price of Tata Stell has gone down after the deal.

Answer 2

the acquisition price of corus is too high
around 630 pence,which is highly over valued
for a steel company, tata steel was ready to pay more than
the earlier offer to out bid the competitor .
in that process it bid for a very high offer
valuations are not atttractive .
hence the fall in price

Answer 3

Lack of Maturity - someone calling the whistle and the flock following-
Had this situation been hyped up with advertisement and tall talk the market would have hit the ceiling.
Most small Indian Investors don't think and a few smart fellow's make hay !!!