Media report on DVR led Tata Motors to surge: Jagdish Malkani

In a chat with RT Now, Jagdish Malkani, Member, NSE & BSE, shares his views on Tata Motors and Tata Motors DVR.

ET Now: What is the call on Tata Motors and Tata Motors DVR?

Jagdish Malkani: I am certainly very bullish on the stock and JLR astounding numbers. Even with China forcing cut back of prices which had stalled the stock, you saw great results, the increasing share of China and the whole global pie etc.

More importantly, this is more exciting prospect for Zest and couple of new launches in the car which they have really been haemorrhaging. Coming to the DVR, Today there is a media report which is the cause of this huge spike up. The report says the index committees or the two exchanges are going to meet and consider including this separately in their key indices even as much as Sensex and Nifty.

Frankly, I would have my doubts on the veracity of that report because stock exchanges so far have taken the view that you have won, you have the main company listed, how can you have two instruments of the same company in the index and of course there are precedences, Google, abroad etc.

I would tend to think that first of all the company itself talked about meeting and talking about listing it as an ADR abroad which is highly possible which gives the option to the foreign investors to invest in this but it seems a little premature. So, I would wait for the clarification. This run-up is little unwarranted today but in longer term, the DVR discounting should come down.