Tata Telcon Shutting Jamshedpur plant and the Stock Market

Tata Motor's subsidiary Telco Construction Equipment Company (Telcon) today announced closure of its Jamshedpur plant from January 14 for four days, the second time in this month on slump in demand.  Whatever be the reason or excuse, I wonder why should the news be so public. Could there be something more sinister going on? The Satyam fiasco has made me suspicious of any and every piece of news about a company.

Anticipating that the prevailing global economic slowdown was unlikely to improve at least in this financial year, Yadav, also the company spokesman here said, Telcon has reduced its production target to  65 units each of heavy vehicles like crane and excavator for January and February. But what happens to the stock price? Could it be that this decision, that maybe taken based on genuine reasons, could be must to manipulate stock prices and thereby some amount of profiteering the the decision makers. Only time will tell. For now we just have to see whether or not the BSE and NSE ticker goes down tomorow and if this news has anything to do with it.