In the past five days the shares of Tata Chemicals rose by 37.82%. The main reason behind this rise is due to a news that Tata sons are about to be listed. This news had a huge impact as, Tata Chemicals own a major stake in Tata Sons.But one thing we should remember is that it is just a speculation. There was no official confirmation from Tata group regarding the listing.
It is said that Tata group is trying to avoid listing Tata sons.Click here to read more.
This rally is basically news driven. Most of the chemical stocks' prices have declined. So huge investors and fund managers are cautioning that not to buy the shares of the company just because of the news. They expect that if the rally continues then, the stock price may even reach levels of Rs. 1,400. Further, if the stock corrects it has the possibility of the price reaching levels below Rs. 950.
Once the Tata group cancel the plan for IPO this share can correct very significantly.
The stock is however a fundamentally good stock but, for long term investors.
To know more about chemical industry in India do click here.
However nobody can assure the stock appreciation. Even if a fund manager suggests a stock ,you should do your own analysis. The best way is to approach a SEBI registered advisor for selecting stocks for investing.
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