Sun TV, SpiceJet rebound after Thursday's sharp fall
Shares of Sun TV Network and SpiceJet bounced back today from massive losses suffered in the previous session, surging by 13.85 and 8.69%, respectively, in morning trade on the bourses.business Updated: Jun 03, 2011 12:16 IST
Shares of Sun TV Network and SpiceJet bounced back on Friday from massive losses suffered in the previous session, surging by 13.85 and 8.69%, respectively, in morning trade on the bourses.
Maran family-owned media conglomerate Sun TV Network spurted by 13.85% to touch an early high of Rs 309.80 on the BSE. The stock suffered a loss of 31.08% during intra-day trade in the previous session, hitting a 52-week low of Rs 260.10.
SpiceJet, which is owned and run by Kalanithi Maran, the brother of DMK leader and Union minister Dayanidhi Maran, also saw renewed buying interest and the stock zoomed up by 8.69% to touch an early peak of Rs 37.50.
The low-cost air carrier tumbled by 18.49% to hit a one-year low of Rs 33.50 during intra-day on Thursday.
The steep fall came in the wake of media reports that Maran family-owned Sun TV Network was a beneficiary of pay-offs by an overseas telecom firm. The CBI has also started a "preliminary investigation" against Dayanidhi Maran.
As per the lawsuit, after Aircel was taken over by Malaysia's Maxis Communications, Sun TV received substantial investment from Maxis Group (Aircel) by taking 20% equity in Sun Direct.
Meanwhile, Maran has said he did not favour any company in granting UASL licences when he was telecom minister during 2004-07, even as political parties BJP and AIADMK called for his resignation on this issue.
Commenting on Friday's growth in both the stocks, analysts said the uptick is mainly due to short-covering and low-level buying by the investors, but negative sentiment still hovers.
"This is just a technical bounce back the counters are witnessing after such sharp falls. Unless and until the uncertainty over the 2G spectrum scam clears, it will be tough to gather investors confidence," CNI Research CMD Kishore P Ostwal said.
First Published: Jun 03, 2011 12:14 IST