INSUBCONTINENT EXCLUSIVE:
evening into an infamous grouping of stocks in which trading is restricted after Mumbai equities posted their biggest single-day fall in
same day--suggesting exchanges suspect excessive speculation in the stock and want to curb such activity
The move surprised market participants as it is unusual for companies with valuation of over Rs 1 lakh crore to be pushed into this
Those keen on trading in these stocks will have to bring in 100 per cent upfront margins, which reduces the activity of day traders in the
Exchanges have put a price movement limit of 5 per cent on either side in a single day
Most of the stocks that are usually brought into the segment are penny stocks vulnerable to price manipulation Brokers said the move will
listed on March 21, 2017 at a market capitalisation of Rs 39,988 crore and since then it has risen 280 per cent and is currently valued at
almost Rs 1.50 lakh crore
Stocks are also moved into this category when the market capitalisation of a company falls below Rs 500 crore, making it vulnerable to price
Most other supermarket and retail chains are trading a P/E ratio of 25-50 times.
While many fund managers and analysts think that the
today than the previous year but they are unlikely to find their way to the market soon
manager, who holds a chunk of Avenue shares, conceded that its valuations are stretched but defended his decision to hold them on the ground
that its growth prospects remain strong as the economy flounders
Out of the 25 brokerages that cover Avenue, 11 have a buy rating, while nine have a sell