NDTV Shares Experience a 36% Surge in Just 48 Hours Company Provides Clarity on Stock Price Surge
NDTV’s stock witnessed a remarkable surge of 15.01%, reaching a peak of Rs 306.55 in contrast to its previous close at Rs 266.55. This surge translates to a substantial 36.18% gain over the course of just two days. Despite this recent upswing, the stock has experienced a decline of over 14% on a year-to-date (YTD) basis. Investors are closely monitoring these fluctuations, and the company’s performance will likely be under scrutiny as it strives to maintain and build on its recent momentum.
In the ongoing trend, NDTV Ltd’s shares displayed remarkable resilience for the second consecutive session on Wednesday, demonstrating a notable surge of 15.01%. Reaching a day high of Rs 306.55 compared to its previous close at Rs 266.55, the stock exhibited a significant 36.18% gain over just a two-day period. Despite this recent upswing, the stock has encountered a setback, experiencing a decline of over 14% on a year-to-date (YTD) basis. This dynamic performance is capturing the attention of investors, prompting a closer examination of the factors influencing the stock’s fluctuation and the company’s overall trajectory in the market.
Promoters Maintain Strong Grip with 69.71% Stake in NDTV as of September 2023 Quarter
Trading activity for NDTV Ltd’s shares remained robust, with substantial volumes observed on the BSE today. Approximately 9.18 lakh shares changed hands, significantly surpassing the two-week average volume of 2.71 lakh shares. The turnover on the counter amounted to Rs 26.80 crore, contributing to a market capitalization (m-cap) of Rs 1,887.40 crore. Notably, sell orders numbered 7,84,440, contrasting with buy orders of 95,360 shares.
In response to the heightened share price, both BSE and NSE sought clarification from NDTV. In its official statement, NDTV asserted, “We would like to submit that the company is unaware of any reason for the increase in volume of shares traded on the stock exchanges, nor is it withholding any information which could influence the volume or price of the shares of the company.” This clarification aims to address the inquiries surrounding the surge in trading activity and signals the company’s commitment to transparency in its communication with stakeholders.
Counter’s 14-Day Relative Strength Index (RSI) Peaks at 85.22, Signalling Strong Momentum
NDTV Ltd’s shares extended their upward trajectory for the second consecutive session during Wednesday’s trading. The stock experienced a notable surge of 15.01%, reaching a day high of Rs 306.55, surpassing its previous close at Rs 266.55. This upward momentum translated to an impressive gain of 36.18% in just two days, with today’s peak price standing at Rs 306.55. Despite this short-term surge, the stock has faced a decline of over 14% on a year-to-date (YTD) basis, reflecting a more extended trend. Investors are closely monitoring these fluctuations, assessing both short-term momentum and the stock’s overall performance in the broader market context.
Amidst the robust trading activity, the counter witnessed substantial volumes, with approximately 9.18 lakh shares changing hands on the BSE—far exceeding the two-week average volume of 2.71 lakh shares. The turnover on the counter reached Rs 26.80 crore, contributing to a market capitalization (m-cap) of Rs 1,887.40 crore. Notably, sell orders numbered 7,84,440, while buy orders amounted to 95,360 shares.
In response to the heightened share price and trading activity, both BSE and NSE sought clarification from NDTV. The company, in its official response, stated, “We would like to submit that the company is unaware of any reason for the increase in the volume of shares traded on the stock exchanges, nor is it withholding any information which could influence the volume or price of the shares of the company.” This clarification underscores the company’s commitment to transparency and assures stakeholders that there is no undisclosed information impacting the stock’s trading dynamics.
Defining Market Conditions: A Reading Below 30 Indicates Oversold, While Above 70 Suggests Overbought
The counter exhibited strength by trading above various key simple moving averages (SMAs), including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs. The 14-day relative strength index (RSI) stood notably high at 85.22, signaling potential overbought conditions, as levels above 70 are traditionally considered overbought, while readings below 30 are indicative of oversold conditions.
Examining valuation metrics, the company’s stock displayed a price-to-equity (P/E) ratio of 199.36, coupled with a price-to-book (P/B) value of 4.60. The one-year beta of 0.9 suggests relatively low volatility in the stock.
Promoters held a significant stake of 69.71% in the company as of the September 2023 quarter, reflecting a substantial level of ownership and commitment.
In a broader market context, all listed Adani Group stocks, including NDTV, witnessed positive momentum. This surge was attributed to the dismissal of short-seller Hindenburg Research’s allegations of corporate fraud against Indian billionaire Gautam Adani by the US government, rendering the accusations “irrelevant.” This development contributed to the positive sentiment and gains across Adani Group stocks.