Hinduja TMT Loses Lustre, Declines 11%

Mumbai, January 24: | Updated: Jan 25 2003, 05:30am hrs
Hinduja TMT plunged on Friday after the Securities and Exchange Board of India (Sebi) barred the company from dealing in securities as an intermediary for a period of two years.

On The Stock Exchange, Mumbai (BSE), the stock of the IT and media firm declined 11 per cent closing at Rs 226, as against its previous close at Rs 254.20. As many as 24,03,842 shares of Hinduja TMT changed hands on the counter on Friday.

Dealers also added that the scrip has declined since the last few sessions. From a recent high of Rs 284.30 on January 20, 2003, it has lost 21.9 per cent in the last four sessions to the current Rs 222 level.

Dealers said the Sebi directive had a sentimental impact on the stock.

The market regulator barred Hinduja TMT from dealing in securities as a capital market intermediary for two years, for violating its regulations in the Subash Projects rights issue in 1995, where Hinduja TMT was a lead manager.

However, analysts remain optimistic about the long-term performance of the company, saying Hinduja TMT, as part of its IT/BPO combination, is also focusing on high-end applications like engineering, design and R&D services.

Regular orders are likely to flow from them for onsite and offshore services, analysts further added.