Shares of Tata Engineering closed 2.21 per cent higher at Rs 136.60 on the Bombay Stock Exchange (BSE) today, following multiple block deals and rumours that UTI was selling shares of the company in the open market. The rumours could not be confirmed.
There were multiple deals in the market. There were around 40-45 deals of around 10,000 shares at around Rs 136.25 However, the biggest deal of 49,000 shares was struck at Rs 136.95.
"The counter witnessed hectic activity, but the identity of the buyers and sellers is not known," dealers at an institutional brokerage house said.
Over 10.95 lakh shares of Tata Engineering were traded on the BSE today, while 35 lakh shares were traded on the National Stock Exchange (NSE). Tata Engineering has surged 12.75 per cent over the last 15 sessions, from Rs 121.15 on August 2, 2002.
Meanwhile, automobile analysts said UTI was not expected to sell its stake in Tata Engineering, and if at all it is selling, it would not be doing it at a price of Rs 150.
They said there had been some genuine buying on the counter today. Analysts are bullish on Tata Engineering, considering its future growth prospects. The company is expected to do very well in the short-term as well (second quarter ending September 30, 2002).
Recently, Tata Engineering revised estimates for commercial vehicle sales growth to nearly 10 per cent in FY 2002-03 due to the arrival of the monsoon in north India.
Last month, Tata Engineering said it expected commercial vehicle sales to grow by merely 7 per cent in the year to March 2003 over the corresponding year, because of the insufficient monsoon in June and July 2002.
But the late spell in the country (in August 2002) has encouraged the truck and bus maker to come out with more optimistic projections.
For July 2002, Tata Engineering registered an impressive 50 per cent rise in overall vehicle sales to 17,608, a 26.6 per cent rise in commercial vehicle sales to 7,338 units, and a 73 per cent jump in passenger vehicles segment to 10,270 units.
