BSE extends rally, zooms 52% in 10 days; stock hits record high

BSE has fixed March 22, 2022, as the record date for the purpose of determining the names of shareholders who shall be entitled for allotment of bonus equity shares in the ratio of 2:1.

Topics
Buzzing stocks | BSE | Markets

Deepak Korgoankar  |  Mumbai 

Shares of Ltd hit a record high of Rs 2,848.40 after they rallied 8.7 per cent on the National Stock Exchange (NSE) in Friday's intra-day trade.

At 10:08 am, the stock traded 6.5 per cent higher at Rs 2,789 as against a 0.5 per cent gain on the Nifty50 index. In the past 10 trading sessions, the stock has zoomed 52 per cent, as compared to a 2.5 per cent rise on the benchmark index.

In the past one week, the market price of has rallied 35 per cent after the company fixed March 22, 2022, as the record date for the purpose of determining the names of shareholders who shall be entitled for allotment of bonus equity shares in the ratio of 2 new fully paid-up equity shares of Rs 2 each for every 1 fully paid-up equity share held by the shareholders of the company.

The board of directors of on February 8, 2022 had approved issue of bonus shares in the ratio of 2:1.

In the past six months, the stock price of BSE has more-than-doubled or has advanced 123 per cent on the back of strong operational performance. In comparison, the Nifty50 index was down 5 per cent. On a one-year time-frame, the stock has skyrocketed 370 per cent as against a 9 per cent gain on the benchmark index.

For October-December quarter (Q3FY22), BSE had reported 86 per cent year-on-year (YoY) jump in its consolidated net profit to Rs 58.6 crore. The company’s revenues from operations grew 60 per cent YoY to Rs 192.7 crore during the quarter. The strong growth was driven by a 44 per cent jump in average daily turnover (ADTV) in the equity cash segment to Rs 5,217 crore. The ADTV for the equity derivatives and currency derivatives segments rose 23 per cent to Rs 2.47 trillion and 29 per cent to Rs 27,124 crore, respectively.

Technical View
Key Support: Rs 2,650

The stock has rebounded strongly after testing support at the lower-end of the Bollinger Band on daily charts, placed at Rs 1,860-odd levels. The announcement of record date for the proposed bonus issue further fueled the buying momentum, with the stock jumping as much as 28 per cent in just two trading sessions.

The price-to-moving averages action, coupled with key momentum oscillators, are clearly in favour of the bulls. The only sour point is that the RSI has entered overbought territory and quotes fairly above the 70-mark.

The stock is currently trading in an unchartered territory, hence there are no historic resistance to watch out. Instead, traders should focus on the Rs 2,650 level which is its immediate support level. Sustained trade below this level can warrant a correction towards Rs 2,350.

(With inputs from Rex Cano)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Read our full coverage on Buzzing stocks
First Published: Fri, March 11 2022. 09:49 IST
RECOMMENDED FOR YOU