J Ku­mar, Prakash Inds Plunge 20%

AT LOWER CIR­CUIT In­vestors rush to sell the stocks given the pre­vail­ing un­cer­tainty

The Economic Times - - Markets: Beating Volatility - Our Bu­reau

Mumbai: Shares of J Ku­mar In­frapro­jects and Prakash In­dus­tries, in which trades were al­lowed on Fri­day by the Se­cu­ri­ties and Ap­pel­late Tri­bunal (SAT), hit the 20% lower cir­cuit as in­vestors rushed to sell both of th­ese stocks be­cause of the un­cer­tainty cre­ated by the Sebi or­der on shell com­pa­nies. Prakash In­dus­tries closed at ₹ 111.20, and J Ku­mar In­frapro­jects plunged to ₹ 226.95. The daily per­mis­si­ble fall in both stocks is 20%. The two com­pa­nies were among the 331 com­pa­nies in which mar­ket reg­u­la­tor asked the stock ex­changes to re­strict trad­ing on Au­gust 7.

All th­ese stocks men­tioned by the reg­u­la­tors were moved to spe­cial seg­ment called graded sur­veil­lance mea­sure (GSM) by stock ex­changes where the shares are al­lowed to trade only on first Mon­day of the month with no up­ward move­ment in price with ad­di­tional sur­veil­lance de­posit of 200% of trade value to be de­posited by the buy­ers. On Thurs­day, SAT stayed tra- ding re­stric­tions im­posed on JKu­mar In­frapro­jects and Prakash In­dus­tries. Sev­eral funds such as HDFC AMC (3.7%), Gold­man Sachs (3.6%), RBS (2.8%), UTI (2.5%) and Black­rock (5%) were in­vestors in J Ku­mar In­frapro­jects, while in­vestors in Prakash In­dus­tries in­clude BNP Paribas (3.4%), Su­nidhi Cap­i­tal (2%), and Rakesh Jhun­jhun­wala (1%).

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