Zee Entertainment shares rise after six sessions as NSE re-includes stock in F&O segment

Shares of Zee Entertainment Ltd rose 8% in early trade today after the National Stock Exchange withdrew the circular excluding the stock from the futures and options segment after the company got interim relief from National Company Law Appellate Tribunal (NCLAT) on the bankruptcy proceedings.

The announcement was made after the Bombay High Court on Tuesday allowed an appeal filed by Invesco against a single-judge order granting interim injunction on holding an EGM of Zee Entertainment.

Zee Entertainment shares rallied 8.06 per cent to Rs 197.75 against the previous close of Rs 183 on BSE. The large cap stock opened with a gain of 3.83 per cent at Rs 190 today. The stock has gained after six days of consecutive fall.

Total 5.58 lakh shares of the firm changed hands amounting to a turnover of Rs 10.80 crore. Market cap of Zee Entertainment rose to Rs 18,658 crore.

The stock hit a 52-week high of Rs 308.65 on April 4, 2022 and a 52-week low of Rs 176.70 on February 23, 2023 on BSE.

The share has lost 15.07 per cent in one year and fallen 18.97 per cent since the beginning of this year. In a month, the stock has slipped 9.73 per cent.

A total of 5.59 lakh shares of the firm changed hands amounting to a turnover of Rs 10.81 crore on BSE. The market cap of the firm rose to Rs 18,677 crore on the BSE.

In terms of technicals, the relative strength index (RSI) of Zee Entertainment stands at 16.5, signaling it's strongly oversold. Zee Entertainment stock has a one-year beta of 1.2, indicating very high volatility during the period. Zee Entertainment shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

NSE said on Monday the circular dated February 23 regarding the exclusion of F&O contracts on Zee stands withdrawn. "In addition to existing contracts with expiry months of March 2023 and April 2023, the futures and options contracts with May 2023 expiry shall also be made available for trading from February 28, 2023," it added.

Earlier, NSE had removed Zee Entertainment from the F&O segment after the expiry of all the existing contracts. The action came after National Company Law Tribunal's order admitting an insolvency plea filed by IndusInd Bank, one of ZEE group's lenders, against the company and its subsidiary Siti Networks.

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