Stock Manipulation
Stock manipulation: Smith & Founders
In March 2014, Shimoga Technologies merged with Smith & Founders (India) and the name of the company was changed to the latter. Smith & Founders manufactures closed die steel forgings, cast iron castings and cast iron cylinder liners.
 

In FY14-15, the revenue from operations of the micro-cap company worked out to Rs6.63 crore. Of this, as much as Rs2.41 crore was paid towards employee benefit expense, of which Rs1.19 crore was paid towards salaries and wages (to approximately 91 employees) and Rs84 lakh (nearly 35% of the total employee expense) was paid to four directors as remuneration. Smith & Founders reported an operating loss in each of the past nine quarters, after the merger. The stock price shot up by 50 times, or 4993%, from Rs0.28 on 25 March 2014 to Rs14.26 on 14 January 2015, after the announcement of the merger. Despite being a loss-making company, the stock price shot up 435% in the past six months from Rs3.42 on 25 February 2016 to Rs18.30 on 8 August 2016. However, by 10 August 2016, the stock price dropped to Rs12, down 33%. Will the regulator investigate the suspicious price movement?

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COMMENTS

Anil Kumar

6 months ago

I appreciate the constant unearthing of these price manipulation by Moneylife. I don't know if you have addressed another very rampant rigging in the market. Movement of shares price to declaration of result. The leakage seems to be from the stock exchanges. Example - Scrip - Store One Retail. The result (below expectation) was published on the BSE website at 4.04 pm. However from 2.10 pm, the share fell 10% . I think the leakage is from stock exchange staff. (If it was from Company side, the share would have fallen a couple of days before the results were declared). So it seems the companies disclose their results with exchanges, the staff in concern department leak it to their friends etc. Don't know if Moneylife has touched on this topic. An update / article investigating this issue - will be much appreciated.

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Nifty, Sensex still in no man's land – Thursday closing report
We had mentioned in Wednesday’s closing report that Nifty, Sensex were directionless. The major indices of the Indian stock markets were on a mildly bullish trend on Thursday and closed with gains of around 0.5%. However, trading volumes on the NSE were low indicating caution among traders. The trends of the major indices over Thursday’s trading are given in the table below:
 
 
Indian equity markets were lifted by positive global cues and short covering during the mid-afternoon trade session on Thursday. Healthy buying was witnessed in banking, automobile and healthcare stocks. The BSE market breadth was skewed in favour of the bulls -- with 1,610 advances and 865 declines in the mid-afternoon session. On the NSE, on Thursday, there were 977 advances, 444 declines and 71 unchanged.
 
Initially on Thursday, both the key indices opened on a higher note prompted by positive cues from Asian and US markets. The investors' sentiments were also boosted by the decision of the US Federal Open Market Committee (FOMC) to maintain its key lending rates. In addition, short covering and value buying at lower levels aided the key indices to sustain the upward movement. Besides, foreign institutional investors have been continuously on the buying side for the last couple of days, which has extended the support to the Indian markets.
 
Tata Motors Ltd on Thursday delivered 241 buses to the Karnataka State Transport Corporation (KSRTC) under the Jawaharlal Nehru National Urban Renewal Mission. To be deployed on inter-state and intra-state services, the buses are equipped with new-generation Tata Cummins engines, air suspension and multiplex wiring, said a statement issued by Tata Motors. The company did not disclose the value of the deal. Karnataka Chief Minister Siddaramaiah took part in a ceremony representing "handing over" of the vehicles to KSRTC for deploying them on new and existing routes, replacing old buses that have run their course. KSRTC operates a whopping 13,000 Tata buses across the state. Tata Motors shares closed at Rs511.15, up 0.18% on the BSE.
 
At a time when banking majors are finding it difficult to raise capital, Maharashtra-based RBL Bank is expected to hit the market with a premium initial public offer on August 19. Formerly known as the Ratnakar Bank Ltd, the bank is hoping to raise over Rs.1,200 crore, basically to shore up its capital base.  According to the prospectus, the bank will pursue inorganic growth initiatives to strengthen its competitive position, including stakes in small finance and payments bank. The IPO comprises a fresh issue of Rs.832.5 crore and an offer of sale of shares by existing shareholders up to 16,909,628 equity shares. The public issue is the first by a private bank in the past couple of years.
 
Reliance Industries has strongly refuted the claims of the Cellular Operators' Association of India (COAI) that its members are providing sufficient inter-connection points for Jio's 4G services, saying the reality was that such access was grossly inadequate. The reaction follows a statement by the industry body on Wednesday on behalf of its members, including Airtel, Vodafone and Idea, rejecting the request from Reliance Jio for additional points of inter-connect from its member companies on the ground that optimal links have already been provided. "Based on industry practice, 12,500 E1 ports (interconnect points, with technical parameters) are required for 22 million subscribers, which details have been provided to the COAI member operators," said a Reliance Industries statement. "As against this, the top 3 operators have released only 1,400 ports so far," the company said. A rough calculation suggests Jio, as per the above, would need a little over 8,500 ports given a subscriber base of 15 million -- thus, a shortfall of over six times. Jio has set a target of achieving 100 million subscribers in the first year of commercial rollout of its service. Reliance Industries shares closed at Rs1,016.60, up 0.26% on the BSE.
 
Oil prices rallied for a fifth straight session on Wednesday as official data showed US crude stockpiles dropped last week. US oil inventories fell 2.5 million barrels last week, surprising analysts who had expected a build of 522,000 barrels, the Energy Information Administration (EIA) said in its weekly report on Wednesday. US gasoline stockpiles also fell 2.7 million barrels, more than expectations of a 1.6 million-barrel drop, the EIA report showed. US oil has rallied more than 12% over the past five sessions as speculation raised that the talks of Organization of the Petroleum Exporting Countries next month could result in a crude output freeze. This is likely to set the Indian stock markets on a bullish trend.
 
Singapore Telecommunications (Singtel) on Thursday said it will pick up 7.39% stake in Bharti Telecom, the holding company of India's largest telecom service provider Bharti Airtel, a company statement said. “Singtel today entered into conditional share purchase agreements with Temasek to acquire 21% of Intouch Holdings Public Company Limited and 7.39% of Bharti Telecom Limited for a total consideration of S$2.47 billion ($1.8 billion),” the statement said. It mentioned that the acquisitions will be settled fully in cash. “This transaction will be funded through internal cash, short-term debt and proceeds from a share placement of 386 million new Singtel shares to Temasek totalling S$1.605 billion at a price of S$4.16 per new share,” the statement said. The acquisitions are in line with Singtel's long-term strategy to increase its exposure to high-performing associates in its portfolio of leading telecom businesses in the region, it added. Bharti Airtel shares closed at Rs352.40, up 2.07% on the BSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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COMMENTS

Prantik Mukherjee

6 months ago

any research on Stovec Industries ?

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