CNBC-TV18’s Executive Editor, Udayan Mukherjee – JP Associates (to replace Bajaj Auto in Sensex) comes as a bit of a surprised I must have made because of all the turbulence, which is happened in JP Associates. These Index inclusions that tend to happen in and what is perceived as stocks which are above water and float above water, no tarnishing in their image etc.
So after the kind of corporate governance question marks, which have been on JP Associates for which the stock has got derated, suddenly it gets included into the Sensex. It started bottoming out, it’s fallen such a lot; lost about 60% plus of its marketcap. This will give it a bit of a short covering fillip, maybe around Rs 200 and the stock might bounce back because it looks the most oversold in the infrastructure space. Sometimes these Index inclusions have a habit of lending a little bit of credibility to stocks, which have a bit of a corporate governance hangover.
So maybe people will take it that light and say it’s not all bad if it gets into the Sensex. How bad can it get? People may think like that and therefore it might lead to some kind of short covering. It’s being a bitten down stock, so frankly it comes as a bit of a surprise out of the blue and might lead the stock up a bit.
Link to the article: http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=329652&special=today
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment