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Jignesh-Shah promoted Financial Technologies (FT) and MCX continued to move up even as the payment crisis awaits final resolution.
On Wednesday, the share price of FT went up as much as 15% during the day but closed at Rs 141.95, up 7.2% from its previous close. MCX hit the upper circuit limit of 5% on opening at Rs 338.30 per share.
According to media reports, a few large investors have evinced interest in picking up stake in MCX, the commodities future exchange owned by the FT group.
“There has been some buying interest in the stock on reports that some large investors are eager to buy a stake. However, it is difficult to say if the stock will be able to maintain these levels given the market conditions,” said Alex Mathew, head of research at Geojit BNP Paribas Financial Services.
“Investors are hoping that the change in management could lead to better governance for these companies. Maybe they are seeing some value in that and therefore, buying into these stocks,” said Sonam H Udasi, head of research at IDBI Capital.
In the last couple of trading sessions, the stock has moved up by about 22%. The FT scrip has risen by about 10%.
Trading on the Financial Technologies promoted NSEL platform was halted on August 1, as the exchange was unable to make payouts to investors on time. The crisis further deepened when the exchange subsequently could not meet its own payment schedule. So far, NSEL has returned about Rs 280-odd crore of the Rs 5500-crore that it owes investors.
The promoters extended the exchange a bridge-loan on Wednesday to meet its obligations.
Since the break-out of the payment crisis in late July this year, the FT stock has fallen by 75% while MCX has declined by about 52%.
However, analysts are advising against investments in these stocks. “Only those wanting to trade should look at these stocks, but investors should stay away. The company is unable to make payouts and promoters have had to take loans. This is no time to buy these stocks,” said the head of research of an Indian brokerage.
