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.
 

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 )