FII Buying, Core Sector Promise Boost Telco Stock

Mumbai, November 28: | Updated: Nov 29 2002, 05:30am hrs
Tata Engineerings (Telco) stock witnessed a considerable rise on Thursday, touching a new two-year high of Rs 169.85, on sustained buying by foreign institutional investors (FIIs).

On The Stock Exchange, Mumbai (BSE), the auto majors stock closed at Rs 169.85, 3.8 per cent higher than its previous close of Rs 163.30.

A total number of 1,66,000 shares of Telco were traded on Thursday.

Dealers said the Telco counter has turned attractive due to the strong fundamentals of the company. It is not surprising the markets are giving the stock a re-rating, dealers added.

Dealers added that bargain-hunting is on in Telco stock. The Golden Quadrilateral Project has been a driver for the stock lately, dealers said.

Analysts said that Telco is likely to record further growth in the coming months owing to the Governments thrust on infrastructure projects.

Also, the shift in consumer preference from single-axle vehicles to multiple axle vehicles, in which Telco is currently the market leader will further its future performance, analysts opined.

Analysts remain largely bullish on their future outlook for the stock, encouraged by the fact that the company has resorted to aggressive cost-cutting and restructuring in the recent past.