Mumbai, Aug 15: The Pied Piper of the stock markets is back, and investors are flocking to his tune. Volumes in BPL Ltd have shot up from a few thousand to 2,61,000 after Harshad Mehta recommended the scrip in early July through his Internet site. The price has soared from Rs 42.50 on June 27 to Rs 101.50 on August 14.

In Krishna Filaments, the volume has gone up from 8,700 on July 28, one day before Mehta made his recommendation, to 13,300 on August 14. Prices have risen from Rs 113.25 to Rs 160.50 during the two-week period. The third recommendation, Global Trust Bank, was made on August 14, and the grapevine says that rats are waiting to scurry on-board when the market reopens after the long weekend holiday.

The Big Bull's field is no more the trading floor of the Bombay Stock Exchange as in 1990-92, but his Internet site - harshad.com. Mehta makes his recommendations in flamboyant style - Leos, says his bio-data on the Internet, are naturally flamboyant. Krishna Filaments was his birthday gift to fans who took part in his Web bash.

The latest recommendation, GTB, is Mehta's Independence-day gift to his followers. But these are merely carrots to attract the initial crowd. The ploy seems to be working if one is to go by the volumes.

Later on, Mehta plans to limit information to his band of followers who will enroll in `Harshad Mehta Fan Club & the Investors Club'. To prospective club members, he says: "You will receive insights on the market exclusively, and tips on the market exclusively as well or ahead of the posting on the web-site for general consumption. As a member of the club, we will try and ensure that good markets or bad, you make money on the market."

Memories of the 1992 scam do not seem to have faded away, so Mehta gets a mix of letters pouring venom and admiration. The balance, however, seems to be tilting definitely towards the latter.

Some of the Web correspondents, who think that they have learned enough of Harshad Mehta's operations from the 1992 experience, seem to think that this time they will be able to latch on to the early rally of a scam in the making, but some others are full of admiration.

One letter from a hesitant fan goes thus: "When you get the hard-earned money of the general investors in your pocket along with your other operators, we will celebrate your earning as well as our empty pockets as happened in 1992 (sic)."

Another fan, expressing his admiration for the Big Bull, admits that he was one of the unfortunate ones who lost money by betting on Harshad stocks in 1992. But he still is looking forward to his recommendations.

In the build-up to the 1992 scam, Harshad Mehta had concentrated on select counters like ACC, Apollo Tyres, etc, moving their prices to unbelievable heights before they came crashing in the aftermath of the scam. He moved ACC from Rs 300 in 1989 to Rs 10,000 per share in the 1992 boom period.

This time too, he is playing the same game, feel many. But Mehta says that hundreds of good Indian stocks are trading far below their intrinsic values and earnings and he is only doing his bit to develop volume and interest in those counters. To articulate his view he has also started a column in one of the English language dailies.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.