Stock price of SpiceJet and Sun TV that plummeted on Thursday were up by 2.2% and 4.2%, respectively on Friday after the company claimed that the allegations were baseless and being levelled to harm the reputation of the company and its promoters.
The stock price of Sun TV was Rs 283.45 up by R11.35 or 4.2%, while the stock price of SpiceJet was Rs 35.25 up by Rs 0.75 or 2.2%.
Industry experts, however, still put a caution on buying stock of both the companies. “Despite the company’s clarification, retail investors should stay away from the stock as uncertainty looms over the fate of the promoters. Moreover, most of the investors are institutional and the movement today displays their reaction,” said a research head of a South India-based brokerage.
The shares of Sun TV plummeted by 27.9% and that of SpiceJet fell by 16.1% on Thursday after allegations that the Maran family was beneficiary of payoffs from an overseas firm. Following the steep fall in share prices, Sun TV on Friday told the BSE, “We wish to inform that Sun TV and Kalanithi Maran do not have any relationship whatsoever to any of these happenings.”