Institutional buying powers MTNL

DALAL STREET SPIKES

State run telecom major Mahanagar Telephone Nigam Ltd (MTNL) ruled firm in a subdued market on Friday owing to strong buying support from institutional investors.

The stock, which was among the few gainers on the Bombay Stock Exchange (BSE), closed at Rs 150.85, up 0.07 per cent from its previous close. The counter witnessed a huge volume of more than 23.8 lakh shares.

Dealers said the MTNL counter has been witnessing aggressive buying from foreign institutional investors as well as domestic mutual funds. From a low of Rs 122.70 on March 26, 2004, the stock surged to today's close of Rs 150.95.

According to market sources, there are rumours that there could be some positive announcement after the elections as a result of which funds are accumulating the stock at lower levels.

MTNL had witnessed volatile trades over the last few sessions, as part of the volatility in other public sector unit stocks caused by political uncertainty.