Tourism Finance gets the 'midas touch'

Tourism Finance Corporation breached the upper circuit at Rs.63 yesterday and today, clocking in volumes of over 5 times, it hit a new 52-week high at Rs.70.50.

The reason for this euphoria is that Rakesh Jhunjhunwala owned company, Insync Capital Partners bought 4.25 lakh shares of the company. These shares, making up 0.53% stake, were purchased from the open market at Rs.56.22/share on the NSE.

For the market, anything which Jhunjhunwala buys is reason enough to buy the same stock and that’s why he is called as man with the Midas touch. Fundamentally, nothing has changed but this buying and the consequent new high is beyond the fundamentals.