Return
to Story Page
To print: Select File and then Print from your
browser's menu
Nalini D'Souza & Aabhas Pandya
Mumbai, June 9: The Videocon counter has come under the microscope of regulatory authorities even as a section of the market attributes the sustained buying in the scrip to a big leap in sales driven by the World Cup rage. While SEBI is quiet on the outcome of the investigation conducted in the price rigging case of Videocon International, Sterlite and BPL, these stocks have once again caught the fancy of operators. According to sources, SEBI has decided to extend its investigation in Videocon considering the recent price and volume surge at the counter.
However, while SEBI officials continued to remain tightlipped on the issue, senior BSE officials explained that the exchange has slapped an incremental margin of 45 per cent on Videocon which can take care of any possible concentrated price rigging at the counter.
``Despite all such surveillance checks, the exchange, under the guidance of the regulator, continues to tighten its area of investigation in these 3 scrips which had led to the much talked aboutpayment crisis on the leading bourses of the country,'' said a SEBI source.
The stock has gained a whopping 34 per cent since June 1 with the price moving up from Rs 55 to Rs 74.05 on June 8. On Wednesday, the stock dropped to Rs 71.55 with a huge volume of 24.27 lakh shares. Between the two trading sessions on June 7 and June 8, the counter saw a volume of 77 lakh shares on BSE. Similar volumes have been registered at the counter since Rs 54 levels, said brokers.
According to brokers, the counter has attracted speculative interest since the company's product line falls within the area of BPL's market share. ``Videocon International is a poor cousin of BPL and considering that BPL is too expensive for small operators to get into considering the volatility and mark-to-market margins, it is easier to take an exposure in Videocon,'' explained a veteran BSE broker.
The long positions at the counter registered a marginal decline on Wednesday from a high of 34.58 lakh shares to 31.35 lakh shares. The net longpositions, however, witnessed a meagre gain of 24,000 shares considering the fact that the short positions have also registered a decline from 16.18 lakh shares to 12.71 lakh shares.
Although Videocon has long been fancied by operators, of late, it has also seen genuine buying interest. According to brokers, Alliance Capital has bought heavily at the counter between Rs 60-65. However, it could not be confirmed.
There have also been strong rumours that Japanese electronic giant Toshiba is entering into a tieup with the company. ``The rumour is that talks are on but it is not known whether it will be only a technical collaboration or whether Toshiba will pick up a stake,'' said a BSE broker.
Besides, the market is expecting a good first quarter for all CTV manufacturers owing to heavy sales during the world cup. ``Videocon is expected to see a big improvement in profit figures as it is believed to have produced 1.35 lakh CTV units in May alone, which is a record for an Indian company,'' said a fundmanager.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
------------------------------------------------------------
This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
------------------------------------------------------------