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The Jignesh Shah-promoted Financial Technologies (India) Ltd (FTIL) and MCX continued to move up, even as a payment crisis at one of their group firms, National Spot Exchange Ltd (NSEL), awaits a final resolution. On Wednesday, the share price of FTIL went up as much as 15 per cent during intra-day, but closed at Rs 141.95, up 7.2 per cent from the previous close. MCX hit the upper circuit limit of five per cent on opening at Rs 338.30 per share. According to 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 per cent. The FTIL scrip has risen by about 10 per cent. Trading on the NSEL platform was halted on August 1, as the exchange was unable to make payments to investors on time. Since the break-out of the payment crisis in late July this year, the FT stock has fallen 75 per cent, while MCX has declined 52 per cent. 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 at an Indian brokerage. Meanwhile, FTIL, in a BSE filing, said: “C M Maniar and
N Balasubramanian, directors of the company, have resigned from the board and thus ceased to be the directors of the company."
