Tata Coffee on Tuesday rocketed by nearly 20 per cent and hit its upper circuit during intra-day trade at BSE on brisk buying by investors on rising coffee prices in the global market.
After starting the day on a robust note, shares of Tata Coffee climbed by 19.99 per cent at Rs 677 during the trade on Bombay Stock Exchange. The scrip, however, settled at Rs 671.90, which is 19.09 per cent up from its previous closing price.
In a similar fashion, the company scrip witnessed 20.01 per cent jump at Rs 676.65 on the National Stock Exchange.
Market experts said that steaming coffee prices in the international market led the rally in the stock. “The future prices of arabica coffee soared to a 34-year high on the back of tight supplies and increased global demand, which resulted in impressive buying by the investors in the Tata Coffee stock,” SMC Global Securities Strategist & Head of Research Mr Jagannadham Thunuguntla said.
Mr Thunuguntla added that the stock may see some correction tomorrow as the investors would prefer booking profits at existing higher levels.
The handsome rally in the company stock was also supported by a strong broad market trend as the BSE benchmark Sensex today closed 216.98 points higher at 18,439.65 level.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.