Home / Business and Economy / Suzlon Energy Surges on FII Stake Increase
Suzlon Energy Surges on FII Stake Increase
16 Apr
Summary
- Suzlon Energy shares rose 6% to an intraday high of ₹48.45.
- Foreign investors increased stake to 23.8% in March quarter.
- Analysts recommend 'Buy' with a target price of ₹55.
Suzlon Energy's stock experienced a notable increase, trading 5% higher at ₹48.23 on the NSE as of 10:30 am, following a 6% rise to an intraday peak of ₹48.45. This surge was primarily driven by news that foreign institutional investors (FIIs) expanded their holdings in the renewable energy company.
In the March quarter, FIIs raised their stake to 23.8%, up from 22.8% in the previous quarter. Mutual funds also saw a slight increase in their stake, reaching 4.87%. This heightened investor confidence comes at a time when FIIs are generally selling Indian equities.
Analysts express a positive long-term view on Suzlon Energy, with one expert recommending a 'Buy' and setting a target price of ₹55. The government's emphasis on renewable energy is seen as a significant advantage for companies like Suzlon. However, the effective execution of the company's existing order book is considered crucial for future earnings and stock performance.
Technically, the stock has found support around the ₹40 level and is showing recovery. Immediate resistance is noted around ₹49, with a potential rally towards the 200-day moving average at ₹53 if this level is decisively breached. Traders are advised to consider buying on dips towards the ₹46-45 range.
