Sanjay Dangi’s portfolio stocks hit by margin pressures?

Shares of Core Education & Technologies, ABG Shipyard, DB Realty, Welspun Corp and Orbit, which are part of Sanjay Dangi’s portfolio, hit their 52-week low today. Market rumours are that the speculative operator has gone bust due to margin pressures. Remember, operators almost always front for company promoters

Shares of several mid-cap companies allegedly linked with speculative operator Sanjay Dangi are tumbling for the past few days. Today, some of the like Core Education were on a freefall. According to market sources, the operator has gone bust due to marked-to-market margin pressures leading to the downfall in share prices of these companies. However, operators usually front for company promoters. When their deal with promoters fall through, margined stocks are sold off mercilessly and the operator takes the blame.
 

Vijay Kedia, director of Kedia Securities says, "Absence of retail investors in Indian capital market is because majority of midcaps are manipulated and operators are never caught".
 

According to reports from www.alphaideas.in, an excellent blog on Indian stocks, one of the group entities related to Dangi, Mentor Capital, holds 1.05% to 12.75% stake in various mid cap and small cap companies. It includes, ABG Shipyard (2.05%), Amar Remedies (1.28%), Ashima (1.46%), Core Education & Tec (1.2%), Gokul Refoils & Solvent (2.91%), J Kumar Infraproject (3.47%), JJ Exporters (3.35%), Kesar Enterprises (3.47%), Kesar Terminal & Infra (3%), Panasonic Appliances (10.26%), Parekh Aluminex (10.61%), Prakash Steelage (4.86%), RPG Life Sciences (2.76%), Sahara One Media Ent (1.05%), Sangam India (12.75%), Sat Industries (1.17%), SQL Star International (5.17%) and Welspun Corp (2.86%).
 

On Monday, midcap stocks like ABG Shipyard and Aanjaneya Lifecare hit the lower circuit with 20% intra-day circuit filter, while trading in DB Realty was frozen at 10% of its lower circuit. Shares of Eros, Welspun, Opto Circuits and Orbit are also down 13% to 30% over their previous closing prices.
 

The case of Core Education & Technologies is quite interesting. On Monday, it looked as if there is no tomorrow for Core Education as its share price tumbled by a whopping 62.42% to hit a 52-week low at Rs110.95. DB Realty is another one that hit its one year high of Rs168.40 on 7 January 2013 and today reached its lowest in 52-week at Rs65.55, hitting the lower circuit limit.
 

ABG Shipyard shares at Rs288.05 hit its 52 week low today, while it recorded its one year high or Rs429.15 on 24 February 2012.
 

Eros closed Monday at Rs181.20 down 6.28%, while Welspun (down 19.86% at Rs67.20), Opto Circuits (down 10.26% at Rs53.35 before hitting 52-week intraday low at Rs48.1) and Orbit Corp ended 12.34% down at Rs33.75 on the BSE. The BSE Sensex ended marginally up at 19331.7.
 

Company Name

Stake in %

 Share price as on 25 Feb 2013

ABG Shipyard

2.05

 Rs288.05 (-19.97%)

Amar Remedies

1.28

 Rs30.85 (-5.51%)

Ashima

1.46

 Rs3.6 (-6.49%)

Core Education & Tec

1.2

 Rs110.95 (-62.42%)

Gokul Refoils & Solvent

2.91

 Rs27.95 (-1.24%)

J Kumar Infraproject

3.47

 Rs214 (-2.64%)

JJ Exporters

3.35

 Rs12.39 (2.99%)

Kesar Enterprises

3.47

 Rs33 (-4.1%)

Kesar Terminal & Infra

3

 Rs58.9 (3.24%)

Panasonic Appliances

10.26

 Rs71.5 (-1.04%)

Parekh Aluminex

10.61

 Rs128.75 (-4.1%)

Prakash Steelage

4.86

 Rs100.75 (3.17%)

RPG Life Sciences

2.76

 Rs59.9 (1.61%)

Sahara One Media Ent

1.05

 Rs95.9 (4.87%)

Sangam India

12.75

 Rs47.6 (-3.25%)

Sat Industries

1.17

 Rs9.75 (1.56%)

SQL Star Intl

5.65

 Rs3.7 (-4.88%)

Welspun Corp

2.86

 Rs67.2 (-19.86%)

Source: AlphaIdeas.in/ BSEIndia.com


Shares of Amar Remedies closed 5.51% down at Rs30.85, Ashima (6.49% Rs3.6), Gokul Refoils & Solvent (1.24% Rs27.95 new low), J Kumar Infraproject (2.64% Rs214), Kesar Enterprises (4.07% Rs33), Panasonic Appliances (1.04% Rs71.5), Parekh Aluminex (4.10% Rs128.75), , Sangam India (3.25% Rs47.60), and SQL Star International (4.88% Rs3.7) were the other big losers from Dangi’s portfolio.
 

Last month, market regulator, Securities and Exchange Board of India (SEBI), imposed a fine of Rs10 lakh on three entities in a case related to alleged share price manipulation by Dangi group and his associates.
 

SEBI, in three separate orders on 28th January, imposed a penalty of Rs5 lakh on Basukinath Highrise, Rs3 lakh on Techbuild Impex and Rs2 lakh on Ragini Merchants. “ These three entities did not furnish various details sought by the regulator like required bank statements and details of shareholders on a quarterly basis, complete details as well as the basis of investments in the dummy companies created by Murli Industries, among others,” SEBI said in the order.
 

Earlier in December 2010, SEBI had passed an interim order banning Dangi for colluding with promoters of Murli Industries, Ackruti City, Welspun Corp and Brushman India to influence share prices of these entities. (Read more Sanjay Dangi, another barred market manipulator, still pulling strings )

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    COMMENTS

    Praveen

    7 years ago

    dear Author

    The title line mentions OPTO circuits as a holding by Dangi, but the tabkle does not give theholding. So how have you made the connection to Opto's fall with Dangi? Are you guessing or do you have some inside information that you will not disclose?Can you please explain?
    Praveen

    siddharth biswal

    7 years ago

    Rs 10 fine?i think you mean Rs 10lac fine.

    arun adalja

    7 years ago

    regulators are watching the market and if such thing happens they can stop trading and prevent the fall.but who bothers?

    Suman Mukherjee

    7 years ago

    It is not necessary that since the stocks belong to the portfolio of an alleged operator, the fall is due to that reason. It could be co-incidental too. Let us see what our regulator finds out.

    DEEPAK KHEMANI

    7 years ago


    3rd last para
    "Last month, market regulator, Securities and Exchange Board of India (SEBI), imposed a fine of Rs10 on three entities"
    FINE OF RS 10 please check and correct.

    REPLY

    BHASKAR MUKHERJI

    In Reply to DEEPAK KHEMANI 7 years ago

    must be 5+3+2=10 lakhs.As explained in the next sentence.
    However this explains why retailers are shying away from the manipulated market.SEBI must correct the functionality of the market and then should bring schemes like RGESS (welcome kit to the manipulated market.

    Nifty, Sensex, delicately poised in the Budget week: Weekly Market Report

    If the Nifty stays above 5,820, it will try to head for 5,950. A fall below 5,820 could be disastrous for the bulls


    The market settled lower for the fourth week in a row, this time on cautiousness ahead of the Union Budget and negative sentiments from the US. Key events to be watched next week would the Railway Budget (26th February), Economic Survey (27th February) and the Union Budget (28th February).

     

    The Sensex declined 151 points (0.78%) to settle at 19,317 and the Nifty closed the week at 5,850, a cut of 37 points (0.63%). The market is delicately poised in the Budget week. If the Nifty stays above 5,820, it will try to head for 5,950. A fall below 5,820 could be disastrous for the bulls.

     

    The market settled in the positive on Monday on gains in capital intensive sectors and the broader markets. Across-the-board buying helped the benchmarks recover from their lows and close higher on Tuesday. The market managed to settle in the green on Wednesday as cautiousness prevailed ahead of the Union Budget.

     

    The market closed down over 1.5% on Thursday on selling in heavyweights after the release of the January meeting of the US Federal Reserve, which suggested that the central bank might withdraw the bond buying initiative sooner than expected. The indices closed flat with a negative bias amid highly volatile trade on cautiousness ahead of the Union Budget and sluggish global cues.

     

    BSE Realty (up 4%) and BSE IT (up 2%) were the top sectoral gainers in the week while BSE Metal (down 3%) and BSE Fast Moving Consumer Goods (down 2%) emerged as the top losers.

     

    The major gainers on the Sensex were Wipro (up 4%), Sun Pharmaceutical Industries (up 3%), Reliance Industries, Infosys (up 2% each) and GAIL India (up 1%). Jindal Steel & Power (down 7%); Coal India (down 5%), Tata Power (down 4%), Tata Steel and ITC (down 3% each) were the key losers on the index.

     

    The top performers on the Nifty were DLF (up 13%), Wipro (up 4%), ACC, HCL Technologies and Ambuja Cements (up 3% each). The main losers were JSPL (down 7%), Coal India (down 5%), Tata Motors, Siemens (down 4% each) and Tata Steel (down 3%).

     

    President Pranab Mukherjee, addressing a joint sitting of Parliament on the first day of the Budget session, set the tone for an austere Budget 2013-14, saying that the past year had been financially difficult for the country, with the Indian economy experiencing slower growth.

     

    Finance minister P Chidambaram, on his part, is reportedly planning to slash public spending by up to 10% from this year’s original target.

     

    The Reserve Bank of India (RBI) on Friday announced the much-awaited guidelines for new bank licences, allowing corporates and public sector entities with sound credentials and a minimum track record of 10 years to foray into the banking business.

     

    Close on the heels of ordering attachment of bank accounts, investments and all other assets of two Sahara group companies and their promoters, including group chief Subrata Roy, the Securities and Exchange Board of India (SEBI) on Friday cautioned the investors and general public against transacting with these companies and persons. On 13th February, SEBI passed two separate orders, together running into 160 pages, directing attachment of properties and freezing of accounts.

     

    In international news, next week’s 1st March deadline to circumvent automatic US spending cuts marks another fiscal showdown between President Barack Obama and Congressional Republicans. If Congress doesn’t act, federal spending will be reduced by $85 billion in the final seven months of this fiscal year and by $1.2 trillion over the next nine years.

     

    Minutes of the January meeting of the Federal Reserve announced earlier this week ignited concerns that the policymakers could withdraw the bond buying programme and US central bank said that it would review the program in March.

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    Nifty, Sensex still not out of the woods: Friday Closing Report

    Yesterday, we had mentioned that the Nifty’s support is at 5,820. Today, the benchmark made a low of 5,836. Yet, strong downward momentum is lacking
     

    The market closed flat with a negative bias amid highly volatile trade as cautiousness prevailed ahead of the Union Budget and sluggish global cues. Yesterday, we had mentioned that the Nifty’s support is at 5,820. Today, the benchmark made a low of 5,836. Yet, strong downward momentum is lacking. The National Stock Exchange (NSE) saw a volume of 56.47 crore shares and advance-decline ratio of 712:770.

     

    The market opened mixed tracking negative cues from Europe and the US in overnight trade. On the other hand, the Asian markets were up in morning trade as investors picked up stocks at lower levels after yesterday’s sharp decline in the markets.

     

    The Nifty opened 14 points lower at 5,838 and the Sensex resumed trade at 19,342, 17 points higher. Buying in oil & gas, pharma and power stocks pushed the indices higher in initial trade.

     

    However, volatility saw the benchmarks moving in and out of the red before dropping to their lows at around 10.30am. The Nifty fell to 5,836 and the Sensex went back to 19,290 at their respective lows.

     

    A fair degree saw the market fluctuating between gains and losses as trade progressed. A positive opening of the European indices supported domestic investor sentiment in the post-noon session.

     

    Buying in banking and healthcare stocks helped the indices hit their intraday highs at round 2.30pm with the Nifty rising to 5,874 and the Sensex going up to 19,402. However, choppiness ahead of the Union Budget kept a cap on the gains.

     

    The market closed a tad lower, and in the red for the second day, on nervousness ahead of the Union Budget next week. The Nifty settled two points down (0.03%) to 5,850 and the Sensex settled eight points (0.04%) at 19,317.

     

    While the BSE Sensex and Nifty closed flat with a negative bias, the broader indices were marginally in the positive. The BSE Mid-cap index added 0.02% and the BSE Small-cap index rose 0.11%.

     

    The top sectoral gainers were BS Realty (up 1.35%); BSE TECk (up 1.33%); BSE IT (up 0.83%); BSE Healthcare (up 0.78%) and BSE Oil & Gas (up 0.58%). The main lowers were BSE Fast Moving Consumer Goods (down 1.41%); BSE Auto (down 0.55%); BSE Metal (down 0.53%); BSE PSU (down 0.29%) and BSE Consumer Durables (down 0.15%).

     

    Fourteen of the 30 stocks on the Sensex closed in the positive. The major gainers on the Sensex were Bharti Airtel (up 4.64%); Wipro (up 2.43%); Sun Pharmaceutical Industries (up 1.96%); ICICI Bank (up 1.22%) and Infosys (up 1.06%). The chief losers were Hindustan Unilever (down 2.60%); Coal India (down 2.31%); Maruti Suzuki (down 2.09%); HDFC (down 1.84%) and Tata Motors (down 1.60%).

     

    The top two A Group gainers on the BSE were—Strides Arcolab (up 5.46%) and Gujarat Fluorochomicals (up 5.37%).

    The top two A Group losers on the BSE were—Jet Airways India (down 5.81%) and United Breweries (down 4.61%).

     

    The top two B Group gainers on the BSE were—Rupa & Company (up 19.97%) and Sacheta Metals (up 19.94%).

    The top two B Group losers on the BSE were—Alka India (down 14.29%) and Winsome Textile Industries (down 13.90%).

     

    Of the 50 stocks on the Nifty, 25 ended in the green. The key gainers were Bharti Airtel (up 4.51%); DLF (up 3.51%); Wipro (up 2.65%); Power Grid Corporation (up 2.25%) and Sun Pharma (up 1.57%). The top losers were HUL (down 2.79%); Coal India (down 2.69%); Jaiprakash Associates (down 2.23%); Maruti Suzuki (down 2.13%) and HDFC (down 1.85%).

     

    Markets across Asia settled mixed following reports that euro-area services and manufacturing declined more-than-expected in February. Besides, the Federal Reserve’s Bank of St Louis president James Bullard said the US unemployment rate may fall to 6.5% by mid-2014 which may prompt the central bank to raise its benchmark interest rate.

     

    The Jakarta Composite rose 0.40%; the KLSE Composite gained 0.50%; the Nikkei 225 advanced 0.68%; the Straits Times added 0.02% and the Seoul Composite was up 0.18%. On the other side, the Shanghai Composite declined 0.51%; the Hang Seng dropped 0.54% and the Taiwan Weighted fell 0.12%.

     

    At the time of writing, CAC of France was up 1.25%, DAX of Germany rose 0.36% and UK’s FTSE 100 gained 0.57%. At the same time, the US stock futures were in the positive, indicating a firm opening for the US markets later in the day.

     

    Back home, foreign institutional investors were net buyers of shares aggregating Rs1,213.57 crore on Thursday whereas domestic institutional investors were net sellers of stocks amounting to Rs228.78 crore.

     

    The RP Sanjiv Goenka group-owned tea and plantations company, Harrisons Malayalam, plans to develop rubber plantations on 4,000-5,000 hectares in Ghana on long-term lease basis. The company would invest nearly Rs300 crore for setting up the plantations. The stock closed 1.14% higher at Rs57.45 on the NSE.

     

    Tata Chemicals’ customised fertilisers unit at Babrala, Uttar Pradesh, is facing hard times. The 1.3-lakh-million-tonne production facility is operating below half its installed capacity because of lack of demand. The stock fell 0.60% to close at Rs330 on the NSE.

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