Sometimes, share prices of some companies move without any reason and the regulator hardly pays attention to inquire into this. On 6th April, the trading volumes and the share price of Jai Corp and Strides Arcolab saw significant movement without any convincing reasons.
After massive searches on Google, the Bombay Stock Exchange and the National Stock Exchange, we found no information or news that could have caused such changes in the trading volumes and the share prices. On 6th April, Jai Corp clocked a volume of 3,477,696 from 167,963 on 5th April, while the share price surged by 15% to Rs 197.75, from Rs171.55 the previous day.
In the Strides Arcolab case, the trading volume surged to 362,986 from 9,489 on 5th April, a whopping 3,725%. The share price closed at Rs395, up from Rs366.20 on 5th April.
As usual, the bourses asked for clarifications and both companies in their usual format replied, "We have no information/announcement to make with respect to the company's
The share price of Aster Silicates surged by 45% between 4th April and 6th April. The huge rise in just three days attracted the attention of the bourses.
In response to a query from the Bombay Stock Exchange about the possible reason for the significant price movement of the company's stock price, Aster Silicates said, "The company said that there is no information/announcement pending." It submitted to the stock exchange that it had informed it on December 23, 2010 that "the company has started the first phase of commercial production of the new project with 150MT per day capacity, funded from the proceeds of the initial public offer. The entire project would be completed by March 2011. So, from the company's point of view the increase in price may be the result of the above news posted earlier."
It has been reported that while the project has been completed in March, due to some miscellaneous issues, the commercial production has been kept on hold.
However, the market did not react on 1st April (Friday) or on 4th April (Monday) to the news of the completion of the project. Thereafter, the share price surged by 44%, from Rs27.30 at the close of trading on 4th April to Rs39.30 on 6th April. What is also interesting is that when the announcement was made on 23rd December, the share price gained by 6% to Rs35.30, from Rs33.20 on the previous day.
So, is it really possible that the announcement of the completion of the project could have resulted in such a huge price rise? But does that matter when the stock exchanges seem satisfied with such explanations!