Heard on the Street: Short-covering lifts TCS ahead of earnings show
In an otherwise flat market on Tuesday, shares of TCS outperformed its peers amid late hour unwinding of short positions, ahead of the company’s fourth quarter results on Thursday.
By ET Bureau | Updated:
Short-covering lifts TCS ahead of earnings show
In an otherwise flat market on Tuesday, shares of TCS outperformed its peers amid late hour unwinding of short positions, ahead of the company’s fourth quarter results on Thursday. The stock, which fell as much as 0.8% earlier in the day, finally settled with a 1.3% gain at . 1,165 on the BSE on Tuesday. Analysts said some traders created significant short positions in TCS stock futures after Infosys announced disappointing margin and volume outlook on Friday. Despite TCS posting better earnings than Infosys in the past five consecutive quarters, traders short-sold the stock as they felt Infosys’ results reflected a poor business environment for the entire IT sector . But with the TCS stock falling over 3% from Thursday’s closing, some traders seem to have changed their mind ahead of the results. Short-sellers have another day to be sure whether TCS would disappoint the market or not.
Contributed by Nishanth Vasudevan
Fame spurts on rights plan
Shares of multiplex chain operator Fame India were locked at the upper circuit on the back of the company’s proposal to issue rights to the shareholders. The announcement triggered hopes that the company may offer the shares at a substantial discount to the market price. When contacted , Fame India company secretary Suratha Satpathy declined to comment on pricing of the . 90-crore offer, saying he will not be able to give more information than what is available in public domain. After touching the day’s low of . 56.80 during late trading hours, Fame India suddenly climbed to . 62.7 where the trading was frozen as the share price reached the 5% upper limit. There were only buyers in the counter with outstanding buy orders for 16,290 shares at the end of trading on Tuesday.
In an otherwise flat market on Tuesday, shares of TCS outperformed its peers amid late hour unwinding of short positions, ahead of the company’s fourth quarter results on Thursday. The stock, which fell as much as 0.8% earlier in the day, finally settled with a 1.3% gain at . 1,165 on the BSE on Tuesday. Analysts said some traders created significant short positions in TCS stock futures after Infosys announced disappointing margin and volume outlook on Friday. Despite TCS posting better earnings than Infosys in the past five consecutive quarters, traders short-sold the stock as they felt Infosys’ results reflected a poor business environment for the entire IT sector . But with the TCS stock falling over 3% from Thursday’s closing, some traders seem to have changed their mind ahead of the results. Short-sellers have another day to be sure whether TCS would disappoint the market or not.
Contributed by Nishanth Vasudevan
Fame spurts on rights plan
Shares of multiplex chain operator Fame India were locked at the upper circuit on the back of the company’s proposal to issue rights to the shareholders. The announcement triggered hopes that the company may offer the shares at a substantial discount to the market price. When contacted , Fame India company secretary Suratha Satpathy declined to comment on pricing of the . 90-crore offer, saying he will not be able to give more information than what is available in public domain. After touching the day’s low of . 56.80 during late trading hours, Fame India suddenly climbed to . 62.7 where the trading was frozen as the share price reached the 5% upper limit. There were only buyers in the counter with outstanding buy orders for 16,290 shares at the end of trading on Tuesday.
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