The NDTV stock is dead in the water

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Editor's note: A fortnight after the Adani group announced that it was acquiring a 29.18% stake in news broadcaster NDTV, its stock shot up to Rs 545.75—its highest price in over a decade—making it the second most valued media company after Mukesh Ambani-owned Network18.  Subsequently, the stock fell to Rs 330 in the days after the Adani group said that it would only pay Rs 294 per share in the mandatory open offer to shareholders. The open offer ended on 5 December and the stock has traded lower since then, only witnessing a 5% rise yesterday, to close at Rs 375. But even so, I believe that the action in the NDTV stock is over for now and it is going to be a long time before investors can look for reasonable gains from here on. There are two reasons for this.  One, the Adani group has shown a lot of caution in its quest to take control of NDTV, unlike its recent acquisition of cement companies ACC and Gujarat Ambuja, where it was willing to pay a premium for the business. …