Buzzing stock : Tech Mahindra up by 14 percent

Even as Indian market is rallying owing to positive global market cues attributed to easing concern over BREXIT and US Fed rate hike, Tech Mahindra has risen 14 percent higher from its Tuesday's close making an intraday high of Rs. 548 per share on BSE on Wednesday. 

The stock has posted stellar results with net profits doubling in Q4FY16. The stock is also seeing positive traction due to Tech Mahindra's decision to withdraw plans to start a payment bank. With this Tech Mahindra becomes the third player to withdraw its plans to start a payment bank. Tech Mahindra along with Mahindra Finance  had obtained the payment bank license. Only in the previous week IDFC Bank, Telenor Financial and Dilip Shangvi had withdrawn their plans. 

Investors will definitely cheer the decision as the payment banks could have not been a profitable venture with stiff competition and shrinking margins. According to media reports RBI may consider levying penalties on companies for withdrawing their plans.

Tech Mahindra is trading above its 200 Simple Daily Moving Average indicating bullishness in the counter.  Stock's 52 w High is at 668 and 52 w Low is at 407. Over a 1 year period the stock has heavily underperformed and delivered at negative 20 percent.