Post Bihar Elections Results observe the rapid decline in share prices of Indiabulls Housing Finance & Reliance Communications!
Both are sinking on the Bourses by 15% + & 10% respectively today ….far more than Sensex drop of 1% to 25600 levels !…and both are traded in F & O Segments too !
Indiabulls Housing Finance down 15% + this morning !
Indiabulls Housing Finance had recorded a high of Rs 820 on BSE on August 10,2015 and was available at even Rs 750 levels end October 2015,just a fortnight ago!.Last few days it has rapidly sunk and today the intensity was a worrying over 15% to sub Rs 600 levels this morning
This is just a day after it announced it was acquiring 39.76 % stake for US $ 100 m in the UK Bank OakNorth as was announced also by the PM in his address to Businessmen in UK yesterday while on a three day UK Trip.Interestingly this acquisition was guided by the outspoken and blunt Dr K C Chakrabarty who is on the Board of Indiabulls Housing Finance and who retired in 2014 as Dy RBI Governor…I had blogged on him then when he was blasting the banking rot !…See the link below :
Why Now? ~RBI Dy Governor K C Chakrabarty speaks his Mind on the Banking Rot and seeks to retire a few months early !
Saturday, March 22nd, 2014
Recently in September 2015 the Company had also raised Rs 3997 crs in a QIP at Rs 702 that took it’s networth past Rs 10000+ crs.It has just announced a third interim dividend for FY 16 on it’s FV Rs 2 Share
BSE shows an average Two Week Daily Volume of just 49000 shares .But today there’s mean abnormal selling at just past noon the Volume is 8.6 lakh shares already !
What’s happening ! ? Anybody knows !?
Incidentally the Chairman Sameer Gehlaut too is picking up a 10% stake in the UK Bank in his personal capacity
RCom ringing alarm bells on the bourses
Reliance Communication recorded a day’s low of Rs 63.75 down over 10% this morning and is trying to recover from there.Just last week it was Rs 82 !….having surged from Rs 50 levels end August 2015….down by 20% from Rs 80+ levels inside days !
Average Two Week Daily Volume is 16 lakhs but it’s approaching 30 lakhs already on BSE as we approach 12.30 pm!
Anybody can explain !?
Whatever be the reason ! and there has to be !,such Volatility in such F & O Segment Scrips is unnerving for Speculators,Traders & Investors et all with the exception of Insiders !
And Both were positioned well,despite Corporate Governance Issues,to move further ahead on favourable fundamental developments and on current valuations !…and I did discuss them at my recent NSE Workshop on October 31,2015 highlighting the Corporate Governance Risks though !