stocks: will they tumble down further?
(Posted on 6 March, 1:30 am)
The fear was palpable. As trading closed on the Bombay stock
exchange a chill went down the spines of media related executives
as the rumour gathered pace that action was being planned against
the biggest player on the Indian stock markets. The broker, who
reportedly paid out advance tax of Rs 910 million sometime back,
is likely to be arrested on the morning of 6 March, if the buzz
is to be believed. Apparently, some documents implicating him
were discovered in the locker of film financier and diamond baron
Bharat Shah, who is currently in the cooler for his alleged links
with the underworld.
If the gossip turns out to be true then there could be a run on
the stock markets. And on media, telecom and software stocks as
the broker is believed to have huge exposures to Zee Telefilms,
HFCL, Global Telesystems and some say Balaji Telefilms, amongst
several other stocks. That the market is wary was seen from the
selling pressure on Zee, HFCL and Global Tele. Zee Telefilms crashed
to a new 12 month low when it slumped to below Rs 115. HFCL and
Global Tele also saw more than 16 per cent being lopped off from
their share price.
Saregama India (Rs 286.95) lost 16 per, Jain Studios (down
13.75 per cent to Rs 56.90), Balaji Telefilms (Rs 205.90), Mukta
Arts (Rs 171.60), Creative Eye (Rs 28.80), Padmalaya Telefilms
(Rs 65.75), Cinevista Communications (Rs 68.05), Tips Industries
(Rs 129.30) and Vision Tech (Rs 23.75) were media shares that
went into a tizzy.
The alarm bells were ringing with the possibility of Zee TV
dropping to below the Rs 100 mark should the arrest of the broker
happen on 6 March. The broker has in recent times turned a seller
of the Zee stock as he has got into a bit of a financial crunch
on account of the take over of Global Trust Bank by the Unit Trust
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