The stock of the electric utility company soared another 11 per cent today backed by heavy cheers from the traders and is now almost threatening to double its value if the two-day long rally continues any further.
SpiceJet soared 10 per cent as Moody’s changed its outlook to positive because the rating agency believes easing lockdowns in the West will drive a sharp surge in demand.
MUMBAI: While the economy may take time to get back to its insipid state of 2019’s slowdown, investors had some solace that Bharat Heavy Electricals is now back to where it was nearly two years ago.
The charm of the stock’s comeback story has ensnared the investing public because nothing is better than getting back on your knees after crawling all this while. The stock of the electric utility company soared another 11 per cent today backed by heavy cheers from the traders and is now almost threatening to double its value if the two-day long rally continues any further.
The platform for this enviable rally was set up by a note being circulated on social media channels that said BHEL will be the largecap stock of the decade. Of course, at a time when mankind does not know what will happen in the next three months (just ask the Center), analysts can diligently predict a 10-year long future. Someone get him to New Delhi, please!
Just to give a sense of the analyst’s optimism, we will drop this small quote here from the note being circulated on social media (no offence L&T):“If India infrastructure has to look and feel like a developed nation, we feel that BHEL will be pivotal to this effort. It's one of the pillars of the Atmanirbhar dream.”
Enough about BHEL. Let’s shine the spotlight on some other movers and shakers of what was otherwise an uninspiring day of trading on Dalal Street (apologies Robinhoods, mobile phones!).
SpiceJet's flyin'! During bull markets, narratives chase stock prices instead the other way around. A similar thing happened with SpiceJet today as the stock soared 10 per cent as Moody’s changed its outlook to positive because the rating agency believes easing lockdowns in the West will drive a sharp surge in demand.
Unfortunately, such days of merry are not coming to India anytime soon as almost the entire country is under some form of lockdown and citizens are busy standing in queues for vaccines instead of the baggage counters of airports. But, let’s not tell that to the person who bought 93,000 shares of the company today.
Neuland’s nosedive Moving on, here is some dash of red in the canvas of green now. Neuland Laboratories, a stock whose returns have made many say “darn it!” in the past year, found itself locked in a 10 per cent lower circuit following March quarter earnings that were not up to the Street expectations.
The only solace for Neuland Labs investors is that the selling was not backed by a crowd, which suggested the stronger hands still backed the company to eventually come good on its promise.
Poster boys suffer The market’s poster boys – steel and metal producers – had an off day because of the Chinese. Steel stocks found that their investors were not that convinced about their prospects as they pressed sell at the first sign of bad news. The bad news came from China where the regulator is not happy with how high commodity prices are going these days; so they intervened to put a leash on the market’s bubbly enthusiasm.
We will now put a leash on our dry humour, but only till tomorrow.
ETMarkets.com
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