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Our Market Bureau
Mumbai, July 28: Tata group stocks seem to have caught the fancy of market players. While the announcement of Tisco's result led to panic selling on the local bourses, Telco's results had an opposite effect. While the results of both the companies have been disappointing, Telco's results, according to market analysts, have been in line with market expectations. While expectations now hinge on to the sale of Telco's small car, Mint, which could help the company recoup some of its losses, the slowdown in the economy seems to be providing enough caution to the investors against building huge positions at the counter.
According to market sources, although the quarterly results have been quite disappointing, two factors have provided enough support to the stock, which traded at a new low of Rs 126.20 on July 24. "Although the sharp fall in the profits of Tisco saw the analysts peg the price-earnings ratio at a single digit figure, Telco continues to attract a higher P/E ratio," explained a BSE broker, who Mumbai, July 28: Tata group stocks seem to have caught the fancy of market players. While the announcement of Tisco's result led to panic selling on the local bourses, Telco's results had an opposite effect. While the results of both the companies have been disappointing, Telco's results, according to market analysts, have been in line with market expectations. While expectations now hinge on to the sale of Telco's small car, Mint, which could help the company recoup some of its losses, the slowdown in the economy seems to be providing enough caution to the investors against building huge positions at the counter.
According to market sources, although the quarterly results have been quite disappointing, two factors have provided enough support to the stock, which traded at a new low of Rs 126.20 on July 24. "Although the sharp fall in the profits of Tisco saw the analysts peg the price-earnings ratio at a single digit figure, Telco continues to attract a higher P/E ratio," explained a BSE broker, whohighlighted the rising interest at the counter on account of attractive valuations for the long term. As on July 27, Telco's P/E ratio was pegged at Rs 10.20. The presence of oversold positions of over 5.4 lakh shares on the BSE on July 27, according to market participants, led to a major rally on the bourse.
On the BSE, the stock hit the upper end of the price band at Rs 126.60, with a huge volume of over 19.72 lakh shares traded at the counter. At the circuit price, about 2.62 lakh shares were outstanding as buy orders which could not be executed on account of the price filter. The stock touched a new low of Rs 116 before recovering.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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