Defying an overall weak stock market trend, shares of Tata Coffee on Friday closed with a nearly 6 per cent gain on heavy buying in the counter.
Shares of the company zoomed up by nearly 16 per cent to touch a record high of Rs 1,562.45 on the BSE during the day. It finally settled at Rs 1,427.50, up 5.89 per cent.
On NSE, the scrip ended at Rs 1,402, 4.01 per cent higher from its previous close.
“It looks like a speculative rally. No specific reason...May be Starbucks deal is making speculators drive up the stock,” CNI Research, CMD, Kishor Ostwal, said.
In terms of volume, 12.34 lakh shares of the company, which is the country’s largest coffee producer and exporter, changed hands on the BSE, while over 34 lakh scrips were traded on the NSE.
The rally in the counter was in sharp contrast to the overall weak stock market trend where the BSE benchmark Sensex closed 162 points lower at a two-month low of 18,309.37.
Analysts also said some investors may be accumulating the stock after recent good earnings performance. Tata Coffee’s consolidated net profit jumped over two-fold to Rs 36.84 crore for the second quarter ended September 30, 2012.
The company had posted a net profit of Rs 17.59 crore for the corresponding period of previous fiscal.