The CCL Products (India) stock witnessed an unbelievable rise on 13th April 2011. The stock price soared 20% to Rs269 on a dramatic surge in volume by 3300% to 408,991 shares from just 12,032 on the previous trading day.
Replying to an enquiry from the bourses about the spurt in trading volumes and the stock price, the company said that there is neither any price sensitive information nor any pending announcement from the company that may have had a bearing on the price/volume of the scrip. The bourses appear satisfied with the reply.
However, a simple news search on Google revealed that on 13th April, C Srishant, executive director of CCL Products, told CNBC television in an interview that the company has planned an extensive launch of pure coffee and Chicory coffee product in the next six months. He said, "We have strategised to place our products at a lower price than our competitors. Since, we don't have any initial advertising expenditure, our margins will be much higher than what we are getting for our exports."
It seems that while the flavour got to the markets swiftly, the management of the bourses are still to get a whiff of it yet!
Sometimes, share prices of some companies move without any reason and the regulator hardly pays attention to inquire into these unexplained movements. On 6th April, the trading volumes and the share price of Agro Dutch, Jai Corp and Strides Arcolab saw significant movement without any justifiable reasons.
We searched for any news on the web and on the Bombay Stock Exchange and the National Stock Exchange sites, but found no information that could have caused such changes in the trading volumes and the share prices.
On 6th April, Agro Dutch Industries stock surged 52% to Rs14.32 from Rs9.41 on 1st April. The company also saw considerable change in volumes during the period, with 69,741, 365,667 and 255,901 shares traded on the 4th, 5th and 6th of April respectively compared to 48,392 shares traded on 1st April.
In the case of Jai Corp, 3,477,696 shares were traded on 6th April compared to 167,963 on 5th April, and the share price jumped by 15% to Rs197.75, from Rs171.55 the previous day.
The Strides Arcolab registered 362,986 shares traded on 6th April from 9,489 shares traded on 5th April, a whopping 3,725% increase. The share price closed at Rs395, up from Rs366.20 on 5th April.
As is the normal practice, the bourses asked for clarifications and all three companies replied almost similarly, "We have no information/announcement to make with respect to the company's operations/performance which may have a bearing on the price/volume behaviour of the company's shares."
Board proposes dividend of Rs16.50; stock slips by 5% in late afternoon session
Mumbai: Bank of Baroda has recorded a 43% increase in net profit at Rs1,294.30 crore in the fourth quarter ended 31 March 2011, against Rs906.20 crore in the corresponding previous quarter.
The bank informed the Bombay Stock Exchange today that its total income rose to Rs7,168.60 crore in the quarter under review from Rs5120.70 crore in the corresponding period last year. Interest income improved to Rs6,334.10 crore from Rs4,353.8 crore.
The board has proposed a dividend of Rs16.50 per equity share on the face value of Rs10 per share for the financial year 2010-2011, reports PTI.
However, the stock was trading lower by over 5% at Rs939 in the late afternoon session after being more or less flat through the morning. The banking index was among the major sectoral losers today, down almost 1% at 3.30pm, in line with the fall in the Sensex.
For the year ended 31 March 2010, the bank posted a net profit of Rs4,241.60 crore compared with Rs3,058.30 crore in the previous fiscal, registering an increase of 38.6%. During the year, total income increased to Rs24,695.10 crore from Rs19,423.20 crore in the previous fiscal.