NDTV share price hits 5% upper circuit for 2nd day straight, more than triples investors’ money YTD NDTV share price touched 5 per cent upper circuit limit at Rs 403.70 apiece, also its 52-week high, amid the Adani group making an offer to take over the media firm. In two days, NDTV’s market valuation has jumped Rs 241.78 crore to Rs 2,602.71 crore on BSE. In the broader market, S&P BSE Sensex quoted 300 points or 0.54 per cent higher at 59,404 while the NSE Nifty 50 climbed 102 points or 0.6 per cent to 17,707. In the previous session too, NDTV stock price had touched the upper circuit. NDTV’s share price has skyrocketed 250.28 per cent so far this year. Also read: Zomato share price up 30% in one month, may rally much more; check target price, rating – buy, sell, hold? On Tuesday, Adani’s media unit AMG Media Networks Ltd exercised the rights to convert the outstanding loan to NDTV’s holding company, resulting in acquisition of a 29.18% stake in NDTV. Thereafter, the Adani unit will launch an open offer as required by capital markets regulator SEBI (Securities and Exchange Board of India) to buy another 26 per cent in the company from shareholders at Rs 294 per share, the company said in a stock exchange filing. Also read: Eight years of systemic reforms increased India’s macroeconomic stability: RBI MPC member Ashima Goyal in a BSE filing, NDTV said that without any discussion with the news channel or its founder-promoters, a notice has been served upon them by Vishvapradhan Commercial Private Limited (VCPL), stating that it has exercised its rights to acquire 99.50% control of RRPR Holding Private Limited (RRPRH), the promoter-owned company that owns 29.18% of NDTV. It also added that the notice from VCPL is based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10.
However, he believes that the impact on the Indian market is going to be temporary since there could be some short-term impact on flows into Indian equity markets. But since the Indian economy is on a strong wicket and will continue to remain resilient.
“Improved fiscal situation, controlled current deficit, stable interest scenario combined with good corporate earnings should lead to limited impact on the Indian bond market and equity market too,” he added.
The midcap and smallcap indices took a bigger knock with the BSE MidCap fell 2.51%, while BSE SmallCap index dived 4.18%. According to Amnish Aggarwal, head, research, Prabhudas Lilladher, the valuations were already high and some correction was expected. “If the situation sustains as it is then further correction can’t be ruled out,” Aggarwal said.
Telecommunication and industrials indices were the top laggards with BSE Telecommunication declining 3.82%, followed by BSE Industrials falling 3.26%. JSW Steel (-2.99%), Tata Steel (-2.52%) and Tata Consultancy Services (-2.44%) were the top losers of Sensex.
Surprisingly, both foreign portfolio investors and domestic institutional investors were net buyers today. While, FPIs net bought shares worth Rs 252.25 crore, DIIs have purchased shares worth Rs 1,111.84 crore, as per provisional data from exchanges.
Calling this a “normal phenomena” Pankaj Pandey, head, research, ICICI Direct said, “I will not really give too much weight to a single day buying figure. Amid concerns of elevated interest rate and geopolitical tensions, in a typical market cycle, 8-10% correction is possible at any point in time.”
The brunt of geopolitical conflict, elevated interest rates and rising crude oil prices was also felt by other Asian- Pacific markets. Jakarta Composite Index lost 1.57% followed by Shanghai Composite Index and PSEi, which fell 1.47% and 0.89%, respectively. Nikkei and KOSPI declined 0.83% and 0.76%.