Profit Sales Pull Down Tata Engg

Shares of automobile major Tata Engineering finished 7.4 per cent lower on the Bombay Stock Exchange (BSE) on Monday as profit-taking pulled down the scrip on the eve of the company's third-quarter results.

A total of 8.33 lakh shares were traded on the BSE alone. The scrip opened at Rs 124.80, touched a high of Rs 126.25 in intra-day deals before winding up at Rs 116.30 against its previous close of Rs 125.60. The low for the day was Rs 115.10.

The scrip price has been rising secularly during the last eight trading sessions - on January 8, it was at Rs 99.55, while last week on January 18, the price had increased to Rs 125.60 an increase of around 26 per cent. The average daily volumes on the BSE at the Telco counter last week was around 13 lakh shares.

Analysts are expecting the company to reduce its losses in the third quarter, but the profit-booking was on cards, market dealers said.

A correction in the price had been expected to for some time. The scrip had hit a 52-week low of Rs 63.45 on September 17, 2001. It has gained nearly 98 per cent since then. Most of the recovery in the stock can be attributed to a reversal in the fortunes of Indica with the launch of the V2 variant.

Telco had last week exhibited the sedan version of Indica at the Auto Expo held in New Delhi.

The new model which is expected to be launched in September this year is likely to be priced between Rs 5 to Rs 7 lakh. More variants of Indica are planned including a station wagon, an estate version and a sports vehicle.