Diamond shares are in the dumps in the stock market for quite some time, not because of the arrest of diamond king and leading film financier Bharat Shah. Share prices of diamond and jewellery manufacturing companies have been languishing on account of various factors, including lack of participation by investors and players and traditional concentration of ownership by promoters, say market analysts.

According to the movements of few diamond stocks traded on the Bombay stock exchange (BSE) during the period of January 2000 and January 2001, none of the company's witnessed large volume. Neither of the companies reported considerable volume, nor major price movements during the period.

In the case of Suraj diamond, the stock opened at Rs 21.05, touched a high of Rs 28.50 (February 2000), a low of Rs 14.30 (July 2000), before ending at Rs 17.35 on January 19, 2001, registering a marginal decline from the year's open, clocking an average volume of 1.76 lakh. Same is the case of precimet diamond, the stock which was quoted at Rs 5 in January shot up to Rs 19.35 in March 2000, fell to the year's low of Rs 3 (November), before ending at Rs 3.40 January 21, 2001, recording an average volume of 1.51 lakh per month. The recent arrest of city based diamond king, Bharat Shah affected market sentiments on the leading bourses and stocks belonging to media and entertainment companies which witnessed considerable fall. Mr Shah's reported exposure in the entertainment industry, as well as his alleged links with key stock brokers in the market, was the key factor behind the negative impact on these stocks.

Interestingly, there was not much impact seen on the diamonds stocks and they were more or less steady, witnessing limited volume, dealers said.Instead, diamond leader Shrenuj and company's stocks shot up by Rs 6.50 to Rs 60.50 on January 19, from the closing price of Rs 54 on January 8, the day Mr Shah was arrested by the mumbai police. While Suraj diamond's stocks reported marginal drop of Rs 1.35 at Rs 17.35 from Rs 18.70 during this period.

Dealers said that in absence of floating stock in these stocks, the movement remained restricted despite major development in the industry.Mr Shah who is being considered, one of the top diamond exporters, is currently in jail on charges of his alleged nexus with Karachi based underworld don Chhota Shakeel.

Another diamond stock, Goldiam International which was quoted at Rs 101 at the beginning of January, 2000, gradually came down during the year and settled down at Rs 50.15 (January 2001), losing Rs 50 from the year's opening level. The fall in Goldiam was not the result of Mr Shah's arrest, but the stock was hovering at the current level for quite some time, the trend indicates.

Suashish diamond was quoted in the range of Rs 52 and Rs 32.70 during the period and its average volume was even below 2000 shares at the BSE. Although the scrip lost by Rs 25.30, the decline did not occur in the short duration of last fifteen days, but during the whole year, it has been observed,In the case of classic diamond, the stock was quoted in a narrow range of Rs 40 and Rs 36.50 during the year, registering a monthly average volume of around 15,000 shares.

It may be noted here that, leading media shares came under severe pressure in the last fifteen days on the BSE, with players resorting to selling in view of possible action against certain companies following Mr Shah's arrest and his alleged connections with entertainment giants.