The market regulator is looking into relevant data collected from the stock exchanges through its internal market surveillance system. SEBI may also seek information from brokerages as well as the companies involved
Market regulator Securities and Exchange Board of India has initiated a probe into the stock price crash in Multi Commodity Exchange (MCX) and its promoter Financial Technologies India Ltd (FTIL) and has asked for information from stock exchanges.
Financial Technologies shares fell by over 62% today, while MCX hit its lower circuit following concerns about another group entity National Spot Exchange Ltd (NSEL).
According to media reports, SEBI began looking into the matter a few days ago, as the stocks of the two companies had been falling for quite some time with unusual volumes.
The regulator is also looking into the trading pattern of some brokerage and many other entities in the two stocks to ascertain whether they had any advance information about problems at NSEL.
Last month Financial Technologies had said that it suspected some vested interests and a bear cartel were behind the sharp plunge in the share prices of the company and its unit MCX.
In a statement, the company said that since 15 July 2013 there have been many malicious rumours afloat on various media. "The series of rumours that are spread in the market have a pattern more particularly to spread on Friday and such rumours are spread by some unscrupulous elements with a design to depress the price of FTIL and damage its reputation," Financial Technologies added.
Anjani Sinha, chief executive of NSEL, told a television channel that the commodity bourse has sufficient physical stocks to cover its outstanding exposure.
The watch and jewellery maker saw its revenues boosted by lower price of gold which spurred demand for its jewellery while the lower discretionary spend impacted its timepiece business
Titan Industries reported 16.9% higher net profit to Rs182.48 crore, for the April-June period, driven by higher jewellery sales due to fall in price of gold. The company’s total revenues, including sales, grew 42% to Rs3,087.8 crore from Rs2,230.8 crore a year ago period.
Bhaskar Bhat, managing director, Titan Industries said, “Margins in both watch and jewellery businesses were impacted due to change in product mix. Consumer sentiment continues to be weak and discretionary spend was subdued. The pressures of high inflation due to a weak rupee as well as rising import costs are a matter of concern. For the coming quarter, we are working on our plans to deal with the weak consumer sentiment as well as the impact of recent regulatory measures introduced in the financing of gold imports.”
During the June quarter, the Tata group company’s revenues from jewellery business increased 47.2% to Rs2,614.16 crore fuelled by drop in gold prices in April and a good wedding season during the first quarter. The watches business grew 11.4% to Rs401.65 crore, impacted by lower discretionary spend. Eyewear, precision engineering and accessories grew by 37.5% to Rs123.21 crore.
Retail expansion continued with a net addition of 15 stores across all its businesses in the June quarter, with retail area of over 1.3 million square feet. The company’s retail chain is 968 stores strong as on 30 June 2013.
The beverage company reported impressive net profit of 44%, despite subdued revenue growth, largely due to cost interventions and exceptional items
Tata Global Beverages reported a 44% higher net profit during the June quarter on improved cost interventions. For the quarter to end-June, the Tata group company said its net profit rose to Rs84.57 crore from Rs56.1 crore as total revenues, including sales, increased to Rs692.9 crore from Rs576.84 crore, same period last year.
Harish Bhat, managing director and chief executive, said: "Growth trends have been quite different across continents, with Europe presenting the most challenging environment. We will also invest behind our strong portfolio of brands, including Tetley, Tata Tea, Eight O'Clock Coffee, Tata Water Plus and Himalayan water."
For the full year the company’s consolidated total income from operations stood at Rs1,813 crores, 5% higher for the same period, reflecting improved performance in most major businesses. Exceptional items for the quarter represents profit on sale of non-current investment of Rs32 crore, profit on sale of land of Rs2 crore and long-term initiatives aggregating to Rs5 crore.
According to the Tata group company, Eight O Clock Coffee K cups, which were launched last year for Keurig single serve brewing machines in the US, continue to make strong inroads in the market and have gained enthusiastic consumer acceptance. Tata Starbucks, a joint venture between Tata Global Beverages and Starbucks now has 18 Starbucks stores across Mumbai and Delhi. The stores are seeing excellent customer response. Tata Coffee inaugurated a premium coffee extraction plant at its Instant Coffee manufacturing facility in Theni, Tamil Nadu. The new extraction plant will help Tata Coffee position its Freeze dried coffee product at premium levels and increase its overall capacity.
At 3.40pm Thursday, Tata Global Beverages was trading 7.8% down at Rs147.2 on the BSE, while the benchmark Sensex was marginally down at 19,317.2.