Financial Daily from THE HINDU group of publications
Wednesday, Jul 28, 2004
Money & Banking - Private Banks
Who is buying GTB stock?
Kolkata , July 27
MARKET players were puzzled today to find an abnormally high volume in the Global Trust Bank stock.
A total of around 7-crore shares changed hands on the BSE and the NSE.
On the NSE, the Rs 10 share traded within a range between 10 paise and Rs 4. On the BSE, some 80-lakh shares were traded within a price band of Rs 1.50 and Rs 6 to finally close at Rs 3.36.
According to Ms Deena Mehta, former Vice-President of the BSE, apparently the people may have been driven by hope of getting something even though the possibility as of now seemed quite dim.
"The variation in prices in percentage terms were quite high which could ignite trading instinct in some," she felt.
A school of market players, however, thought that it would not be surprising if some of buyers had any insider information, which suggested probability of certain residual payment to the shareholder in future.
"There is no reason to think that all the buyers were fools. Some may have thought it is a risk worth taking," observed Mr Rajesh Agarwal of CD Equisearch.
However, he ruled out the possibility of any tax saving angle to such buying. "None is expected to pump in money and take instant delivery to lose the capital for the sake of loss set off against profits," he argued.
Mr Narain Jain, noted tax consultant, was of the opinion that a claim for a set off such losses against profits in share trading by a corporate tax payer or an individual was a plausible reason.
On Monday, GTB counter had attracted trades worth 3.5 lakh shares on the BSE and 5.64 lakh shares on the NSE.
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