Financial Daily from THE HINDU group of publications
Wednesday, Sep 17, 2003
Financial Daily from THE HINDU group of publications Wednesday, Sep 17, 2003 |
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Markets
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Stock Markets Diamond cos losing shine Jayanta Mallick
Kolkata , Sept. 16 THE stocks of diamond exporting companies have of late lost their sparkle on the major bourses. According to brokers and dealers, the stocks are generally are in the grip of certain known operators. "For example, the Rajesh Exports counter, which saw its 52-week high at Rs 121.20 on September 1 on the NSE with a traded quantity over 37,000, suddenly began to slide down along with a drop in volume. The very trading pattern suggests operators' touch to the stock", said Mr Ajay Jaiswal of Lohia Securities. The Rajesh Exports stock, however, has given the highest return of 167.9 per cent to the investors in the current market rally period since April 29 compared to the other stocks in the segment. It has moved up from Rs 62.90 to 105.60 (at Tuesday's closing). According to Mr Ketan Parekh of Anagram Stockbroking, on an average, the stocks of diamond companies have slightly underperformed the general market. While the Sensex has risen by 45 per cent from April 29, the diamond stocks have given an average return of 31 per cent during the same period. SB&T International, which is the most active among these stocks (average daily volume of 2.31 lakh on the NSE in the last two months), has, however given a return of just 3.7 per cent in over four months. The stock closed at Rs 32.15 on Tuesday. Its 52-week high on the NSE was recorded at Rs 43. "Fundamentally speaking, the stocks have been showing some movement in the recent past because of signs of improvement seen in the US economy", said an industry analyst. According to Gems and Jewellery Export Promotion Council's provisional estimates, cut and polished diamonds registered 19.06 per cent growth in exports at $7.11 million in fiscal 2002-03. According to industry observers, Indian companies dominate the world's cut and polished diamonds market, accounting for approximately 55 per cent market share and nearly nine per cent of the jewellery market. Other major players are Belgium and Israel. China is, of course, gradually becoming a strong competitor.
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