Tata Teleservices (Maharashtra) shares saw an upper circuit of 5 per cent today despite a weak market sentiment. Let us tell you that the Sensex and Nifty have seen a decline for the second consecutive day and they have lost more than 1 percent in 2 days.
Tata Teleservices (Maharashtra) stock closed at Rs 202.70 on BSE in today’s trading on Wednesday. The stock has more than doubled in the last one month. Compared to March’s low, the stock has shown a rise of 116 per cent from its March 8 closing of Rs 93.55.
Due to this rally in the month of March without any reason, the stock exchanges have sought an explanation from the company on this rise in the price of shares. Responding to this, on March 30, the company said that it always keeps disclosing about the progress or any conversation in relation to the company under the rules and will continue to do so in the future.
The stock has proved to be the second biggest gainer of the BSE 500 index and has given a return of 1,451 per cent in the last 1 year.
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Talking about the great rally in this stock Santosh Meena of Swastika Investmart Said that they cannot say with certainty that this stock has underperformed due to any fundamental reason, but Tata Teleservices’ new avatar as Tata Tele Business Services (TTBS) has been very effective. It aims to focus on small and medium enterprises. Please tell that such media reports came last year.
He further added that there could be another reason for this bull run. In a bull run, there are many penny stocks that, in violation of the Law of Gravity, move rapidly upwards without any change in the fundamentals. This share of Tata Group may also have come up in a hurry under the same rule.
Significantly, the financial performance of this Tata Group company has not been very good. The company has been continuously making losses. The company has incurred a loss of Rs 302.30 crore in the December 2021 quarter, while the company had a loss of Rs 313.63 crore in the September 2021 quarter.