MTNL benefits from PSU frenzy on D-Street

What is a fairly good indicator that the rally may be close to peaking out? Some veteran brokers say it is when even the stock price of even the most consistent laggards start shooting up. Shares of state-owned MTNL, which has been a big underperformer in the past six months, figured among the notable gainers on Tuesday.

The stock rose 10% to close at Rs 85.65. On BSE, more 31 lakh shares changed hands, which is six times the daily two-week average volume at the counter. One could attribute the frenzy to the overall bullishness in state-owned stocks.

But then, MTNL has been one stock in which even the bravest of bulls have not been able to make meaningful profits in the past decade.