Entertainment stocks crash again

Entertainment stocks crash again
ENS ECONOMIC BUREAU

DEC 18: Even as the Bombay Stock Exchange (BSE) Sensex shot up by 33 points on Monday, stocks of entertainment companies continued their downward journey on the bourses in the light of the police investigations into the Bolywood links with the underworld.

Music firm, Tips Industries and Jeetendra's television software maker Balaji Telefilms fell 8 per cent in the morning trades. In fact, Tips shares were down Rs 28 at Rs 342.75, down by 19 per cent from a high of Rs 423.65 on December 13. Similarly, Subhash Ghai's Mukta Arts was down 4 per cent as soon as the market opened but closed a tad higher at Rs 250.

Balaji Telefilms came out with an IPO of Rs 130 and was listed in mid-November while the initial public offer of Mukta Arts was priced at Rs 165 and Tips came out with an IPO priced at Rs 325.

Besides, since their month-high peaks, Subhash Ghai's Mukta Arts and Balaji Telefilms are down by 21 and 17 per cent, respectively. "The Big Bull has liquidated his long positions in the entertainment shares due to the ongoing probe into Chori Chori Chupke Chupke episode," said a Mumbai-based stock broker.

It was reported that it was Big Bull Ketan Parekh, who was disinvesting in these shares due to some problems with his client, Bharat Shah.

In a statement, however, Ketan Parekh, a Bombay Stock Exchange member, denied any knowledge on selling large quantities of Bollywood stocks. ``There were some news report that I have sold large quantities of shares in the market in order to make repayment to some financiers.''

``In the interest of investors, I would like to clarify that I have no such transactions or borrowings from any such financier nor have I sold any shares. I an deeply disturbed that our investors are often misled by such reports which causes immense harm to their hard-earned wealth.''

However, market sources say that the sudden disinterest of entertainment stocks by a group of brokers is due to the fact that the police is digging deep into the Chori Chori Chupke Chupke episode.

Zee TV, one of the most fancied scrips in the entertainment industry, closed a tad higher at Rs 302 as compared to its Friday's closing of Rs 297. The scrip, however, fell in the morning trades to Rs 293 before recovering in the late afternoon session.