 "'Salman stocks' rally as Bombay HC suspends 5-year jail sentence")
Amid a sentiment-driven rally, the shares of Eros International, the distribution partner for Khan’s under-production film Bajrangi Bhaijaan, which is slated for release on Eid this year, rallied as much as eight per cent in intra-day deals to Rs 418 apiece on the National Stock Exchange (NSE). The stock later pared some of its gains but still outperformed the broader market; it closed four per cent higher than its previous close to end the day at Rs 402, compared with the CNX Nifty’s 1.7 per cent rise to 8,191.
A Mumbai sessions court had on Wednesday found Khan guilty of culpable homicide in the 2002 car crash case, and sentenced him to a five-year jail term. However, the Bombay High Court had given the actor a two-day interim bail, which was to expire on Friday.
“The upmove in the (Eros) stock was purely driven by sentiment after the Bombay High Court’s verdict regarding Salman Khan. However, Eros remains on a firm footing fundamentally too, and investors could continue to hold the stock for now,” said G Chokkalingam, founder & managing director, Equinomics Research & Advisory.
Another Khan-related stock, Mandhana Industries, which had lost around two per cent before the verdict, recovered after the court order and rallied nearly three per cent to touch a high of Rs 263 on NSE. But it pared most of its gains to close marginally lower than its previous close — down 0.69 per cent to Rs 253.5 a share. Mandhana Industries designs, markets and distributes ‘Being Human’ apparel brand, which is named after Salman Khan’s Being Human Foundation.
Khan’s other business interests include a five per cent stake in Yatra, an online travel company. He also endorses brands like aerated beverage Thums Up, The History Channel, Hindustan Unilever’s laundry detergent Wheel, Astral Poly Technik and Britannia’s Tiger biscuits.