Ketan Parekh and his associates behind the move: Marketmen

Stocks of seven companies took a beating on the bourses following unconfirmed reports of price volume rigging.

Marketmen claim that an Intelligence Bureau (IB) investigation points to the manipulation of the scrips. But none in the market place have seen the report.

Dewan Housing, which is one of the seven companies, responded to the news. In a filing to the exchanges, the housing finance company said that “its promoters categorically deny any knowledge of such manipulation or any connection whatsoever with the so called brokers/ manipulators as reported in the media.” Dewan Housing Finance Corporation closed at Rs 156.40, down 14.49 per cent. Other stocks which were hit by the report were Goenka Diamonds and Jewels, Orchid Chemicals and Pharmaceuticals, IVRCL, Pantaloon Retail (India), Tribhovandas Bhimji Zaveri (TBZ) and GMR Infrastructure.

Market buzz has it that the report points to “Ketan Parekh and his associates” behind the price and volume action. Ketan Parekh has been banned from trading on the bourses till 2017 by the Securities and Exchange Board of India. A similar report by IB in 2010 blamed Ketan Parekh and associates for stock manipulations.

Buying opportunity

“We are not sure if such a report exists. On any negative news, stocks will react badly. However, if this fall sustains for a few days then it is a matter of concern. At the moment I see it as a buying opportunity for the stocks with good fundamentals which are on this list,” said a research analyst.

Goenka diamond and jewels closed at Rs 161.75, down 20 per cent. Orchid Chemicals and Pharmaceuticals closed at Rs 118.95, down 5.11 per cent, IVRCL closed at Rs 49.55, down 6.7 per cent, GMR Infrastructure ended the day at Rs 24.90, down 4.96 per cent and Pantaloon Retail (India) closed at Rs 185.20, down 3.54 per cent. TBZ closed at Rs 111.80, down 6.13 per cent.

(This article was published on July 9, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.