The stock witnessed extraordinary trading activity with trading volume jumping 32 times to 40.70 lakh shares on the National Stock Exchange (NSE) compared with an average volume of 1.28 lakh shares. As reported by market sources, this dramatic increase in trading volume indicates heightened investor interest and significant market participation in the stock, suggesting strong buying interest from investors despite the challenging market conditions. On the BSE, 3.04 lakh shares changed hands compared with an average of 64,000 shares traded daily in the past two weeks, while 83 lakh shares were traded compared with a two-week average of 46.57 lakh shares.
Tata Investment Corporation shares experienced significant upward momentum today, opening at ₹618.55 against the previous close of ₹618.30 and jumping 9.8% to reach an intraday high of ₹679. According to market reports, this represents a notable surge for the stock despite the broader market trend showing weakness. The stock, however, pared gains and traded 4% up at ₹643 around 10:45 AM, looking set to snap its four-day losing run. Equity benchmark Sensex was flat at that time, with SENSEX down 10 points at 74,754 and NIFTY50 index unchanged at 23,432 as of 12:21 pm on Thursday, September 10.
The 10% surge in Tata Investment Corporation shares occurred against the backdrop of escalating global tensions and weak market sentiment. According to market data, this performance stands out as the stock moved against the prevailing market sentiment, highlighting the stock's resilience and potential investor confidence in the company's prospects. The surge comes as Brent crude remained above $100 a barrel after Iran and the US traded their heaviest wave of attacks on Gulf shipping since the six-month-old war began, with Iran striking ten vessels near the Strait of Hormuz hours after US forces sank five Iranian oil tankers. Flows through the Strait of Hormuz have fallen as low as 2 million barrels per day, according to Rystad Energy, down sharply from 8-9 million bpd just before fighting resumed on August 30.
Tata Sons Private Limited held 34,66,46,630 shares, or 68.51% stake, in the company by the end of the June quarter of the current financial year. Among non-promoter shareholders, foreign portfolio investors (FPIs) held 1,34,92,924 shares, or 2.67% stake, in the company by the end of the June quarter. According to Aditya Thukral, founder and analyst at AT Research and Risk Managers, Tata Investment Corporation has been hovering around all the major exponential moving averages, indicating a sideways trend for the stock. However, Thukral added that all the rallies are getting sold off in the stock, so every rally is an exit opportunity for long positions as the stock is expected to trade range-bound for another 6 months or so. "Now that the stock is trading with negative crossovers between all the major EMA's, selling pressure can mount on the stock prices. There is no buying opportunity in the stock at the moment; rather, investors should consider exiting this stock on every rally," said Thukral.
