Sun TV, SpiceJet stocks recover slightly

Analysts said the uptick is mainly due to short-covering and low-level buying by the investors, but negative sentiment still hovers.

Shares of Sun TV Network and SpiceJetbounced back on Friday from massive losses suffered in the previous session,surging by 13.85 and 8.69 per cent, respectively, in morning trade on thebourses.

However in the afternoon trade, the stocks gave upsome gains after the Tamil Nadu government announced a takeover of cable TVdistribution in the state. The stocks were each trading nearly 2.5 per centhigher at 1.30 pm.

Maran family-owned media conglomerate Sun TV Network spurtedby 13.85 per cent to touch an early high of Rs 309.80 on the BSE. The stocksuffered a loss of 31.08 per cent during intra-day trade in the previoussession, hitting a 52-week low of Rs 260.10.

SpiceJet, which is owned and run by Kalanithi Maran, thebrother of DMK leader and Union Minister Dayanidhi Maran, also saw renewedbuying interest and the stock zoomed up by 8.69 per cent to touch an early peak of Rs 37.50.

The low-cost air carrier tumbled by 18.49 per cent to hit aone-year low of Rs 33.50 during intra-day on Thursday.

The steep fall came in the wake of media reports that Maranfamily-owned Sun TV Network was a beneficiary of pay-offs by an overseastelecom firm. The CBI has also started a "preliminary investigation"against Dayanidhi Maran.

As per the lawsuit, after Aircel was taken over by Malaysia'sMaxis Communications, Sun TV received substantial investment from Maxis Group(Aircel) by taking 20 per cent equity in Sun Direct.

Meanwhile, Maran has said he did not favour any company ingranting UASL licences when he was telecom minister during 2004-07, even aspolitical parties BJP and AIADMK called for his resignation on this issue.

Commenting on Friday's rebound in both the stocks, analystssaid the uptick is mainly due to short-covering and low-level buying by theinvestors, but negative sentiment still hovers.

"This is just a technical bounce back the counters arewitnessing after such sharp falls. Unless and until the uncertainty over the 2Gspectrum scam clears, it will be tough to gather investors confidence,"CNI Research CMD Kishore P Ostwal said.

--With PTI inputs