Financial Tech jumps over 6% on Deutsche Bank buy report

Financial Technologies rose over 6 percent in early trade on Friday as the research firm Deutsche Bank recommended a buy rating on the stock with a target price of Rs 1,350.

"While commodity transaction tax (CTT) could reduce traded volumes in MCX , a cut in securities transaction tax (STT) and allowance for FIIs to participate in the currency derivatives segment should boost trading turnover for MCX-stock exchange," Deutsche Bank reasoned.
 
Finance minister P Chidambaram cut securities transaction tax (STT) from 0.17 percent to 0.1 percent. He said agri commodities would be exempted from CTT while CTT introduced for non-agri commodity futures contracts at 0.1 percent.

Financial Technologies holds 26 percent stake in Multi Commodity Exchange (MCX) as of December 31, 2012.

At 09:38 hours IST, shares went up 1.5 percent to Rs 857 on Bombay Stock Exchange.