Select stocks tank as ghost of Ketan Parekh haunts markets

R. Y. Narayanan Coimbatore | Updated on July 09, 2012 Published on July 09, 2012

The bruising report about the alleged unearthing of a “stock market scam’’ by the Intelligence Bureau of the Central Government carried by a media publication brought back the ghost of Ketan Parekh to haunt the markets and took a toll on select stocks that were mentioned in the report.

While two of the seven stocks mentioned in the report took a major blow in trading, the other five stocks, while shedding value, managed to pull back from the lows in the morning trade.

There was huge volume of trading in these counters on the NSE within 30 minutes of trading.

The report listed seven companies — Dewan Housing Finance Corporation Ltd, Goenka Diamond and Jewels Ltd, Orchid Chemicals and Pharmaceuticals Ltd, IVRCL Ltd, Pantaloon Retail (India) Ltd, Tribhovandas Bhimji Zaveri IPO and GMR Infrastructure Ltd as figuring in the IB report.

The newspaper report said that the Intelligence Bureau report suggested that “Ketan Parekh and his associates are driving up share prices through the creation of false volumes’’ and that these “manipulators are brazenly continuing their illegal activities using circular trading, insider trading and use of front entities to rig up prices’’.

The report said that there were two others who were aiding Ketan Parekh in the act.

The worst-hit among the stocks mentioned in the story was Goenka Diamond and Jewels Ltd that tanked 19.99 per cent or Rs 40.05 to Rs 160.30. There were only sellers and no buyers at the counter at 9.30 am with a trading volume of about 1.2 2 lakh shares.

Dewan Housing was down by Rs 13 or 7.10 per cent to Rs 170.20 with a volume of 2.43 lakh shares. The stock had recovered from the low of Rs 160.

IVRCL shed Rs 1.80 to trade at Rs 51.25, down 3.39 per cent with a trading volume of 8.71 lakh shares on the NSE. The stock’s low was Rs 50.80.

Orchid Chemicals lost Rs 4.20 to trade at Rs 121.15, down 3.35 per cent with a trading volume of 3.35 lakh shares. Pantaloon Retail slipped to Rs 185.30, down Rs 6.80 or 3.54 per cent, with a volume of 6.97 lakh shares. The stock had pulled back from the low of Rs 181.20.

TBZi, whose shares clawed back to the issue price of Rs 120 last week after going public recently, shed Rs 5.45 or 4.5 per cent to Rs 113.90 with a volume of 55,700 shares. This stock too had recovered from the low of Rs 112.15.

GMR Infra skidded by Re 1 to Rs 25.30 or 3.8 per cent. The trading volume was 10.62 lakh shares.

Published on July 09, 2012
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