The scrip of Tata Coffee hit the upper circuit during Thursday’s trading session recording an all-time high on both exchanges, as investors are betting on consumption theme. On the BSE, the stock closed at Rs 1,348.10 a share, up 20 per cent (or Rs 225 a share). Trading volumes have also increased sharply to 4.3 lakh shares against the two-week average of 60,000 sharesAnalysts said the stock rose largely due to growing FII interest in the FMCG sector. “Tata Coffee, in particular, seems to have benefited from its association with Starbucks, which has a lot of foreign investors excited. There was no particular company-related news that seems to have affected the stock,” said Nitin Mathur, analyst with Esprito Santo Securities.
No FIIs yet
However, till September, the stock has not seen any FII investment.
Market experts added that foreign investors believed Indian markets would return more now than European and US markets and were heavily investing in FMCG and other consumption-related stocks.
On the BSE, the FMCG sector index was down 1.3 per cent, while the consumer-durables sector was up 1.8 per cent. On the NSE, the FMCG sector index was down 1.2 per cent, while the consumption index was up 0.1 per cent. On Thursday, the BSE Sensex closed down 0.8 per cent at 18,471. The NSE Nifty closed down 0.6 per cent at 5,631.
The Tata Coffee stock shot up after the first couple of hours of trading and then remained at those levels. The closing price of the share was the same as its 52-week high.