Amidst a flurry of market activity, NDTV’s share price experienced a robust surge, catapulting by 15.01 percent to attain a noteworthy day high of Rs 306.55, surpassing its preceding close at Rs 266.55. This surge translated into an impressive gain of 36.18 percent within a mere two-day span; however, juxtaposed against the year-to-date (YTD) performance, the stock exhibited a decline of over 14 percent.
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The 14-day relative strength index (RSI) for NDTV’s counter stood at 85.22, signifying a state of overbought conditions, given that a value above 70 is conventionally considered overbought, while a level below 30 is classified as oversold. Remarkably, the stock continued its upward trajectory for the second consecutive session, defying conventional market trends.
The robust performance was echoed in the trading volumes as well, with approximately 9.18 lakh shares changing hands on the BSE, significantly eclipsing the two-week average volume of 2.71 lakh shares. The turnover on the counter reached Rs 26.80 crore, corresponding to a market capitalization (m-cap) of Rs 1,887.40 crore. Notably, sell orders numbered 7,84,440 against buy orders of 95,360 shares, indicating a fervent market response.
The soaring share prices prompted regulatory scrutiny, with both BSE and NSE seeking clarification from NDTV on the unusual surge. In response, NDTV stated that it was unaware of any specific reason for the surge in trading volume and asserted its commitment to promptly disclose any information or announcements mandated by applicable regulations.
Interestingly, the counter exhibited a trading performance surpassing various moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs). The 14-day RSI reinforced the overbought status, emphasizing the stock’s strong bullish momentum.
Delving into the financial metrics, NDTV’s stock presented a price-to-equity (P/E) ratio of 199.36, coupled with a price-to-book (P/B) value of 4.60. Furthermore, the scrip boasted a one-year beta of 0.9, indicating relatively low volatility in comparison to the market.
A significant ownership revelation unveiled that, as of the September 2023 quarter, promoters retained a substantial 69.71 percent stake in the company, underscoring their enduring confidence in NDTV’s prospects.
In a broader market context, the rally in NDTV’s stock aligns with the positive momentum witnessed in all Adani Group stocks, including NDTV. This surge was attributed to the US government dismissing allegations of corporate fraud against Indian billionaire Gautam Adani made by the short-seller Hindenburg Research as “irrelevant.” The Adani Group stocks, which had earlier faced substantial wealth erosion following the allegations, displayed a mixed recovery trajectory, with some shares regaining lost ground while others were still in the process of recovery. This development added an intriguing layer to the overall market dynamics, emphasizing the interconnectedness of stocks within a conglomerate.
In summary, NDTV’s recent stock performance showcased a remarkable surge, prompting regulatory attention and raising questions about the underlying factors driving this rapid ascent. The company’s responses and the broader market dynamics, particularly the positive sentiment surrounding Adani Group stocks, added complexity to the narrative, leaving investors and analysts alike eager for further developments in the unfolding market saga.