Tata group stocks gain up to 19 % due to spurt in volumes, prices

Nitin Mathur

New Delhi, Oct 31: Tata-group stocks have been on a rally since the government increased the limit on buyback of shares from 5-10 per cent without shareholder approval. These stocks have shown a sharp spurt in both prices and volumes and have gained up to 19 per cent since mid-October. The market is full of rumours that the Tatas are indulging in creeping acquisition of shares, especially in companies where their holdings are on the lower side, brokers say.

Tata Tea, Tata Finance and Telco have emerged as the top gainers since October 15 with gains in the range of 15-19 per cent. Volumes have also shot up in these stocks during the period. On October 31, most of these stocks registered handsome gains. Telco soared 6.27 per cent to close at Rs 84.75. However, Tata Steel proved to be a loser due to depressing quarterly financial results. According to a Delhi-based broker, “Promoters are expected to pick-up shares of their companies where their holdings are low. Tatas are cashing on this opportunity and since market prices are on the lower side, they can easily increase their holdings at lower costs.”

Tata Tea, was the top gainer amongst the Tata group stocks during the period. The scrip spurted over 19 per cent during the last fortnight to close at Rs 152.65.