Mumbai, Aug 24: Dormant stocks written-off by investors for a long time are back in action, thanks to the across-the-board euphoria in the market witnessed in the last one month.The number of B2 stocks traded on the BSE has gone up by over 400 since the beginning of this month. The B2 group used to witness trading in around 600 to 700 stocks during the first week of August. On Tuesday, 1032 B2 stocks were traded compared to over 800 on Monday.
The B2 turnover has gone up by about five times from Rs 5.49 crore on August 2 to Rs 25.5 crore on Tuesday.
The bull run which percolated to the B1 stocks (number of traded stocks going up from 841 to 984) started spreading to B2 stocks from the second week of August. So much so that the turnover in B2 stocks on Tuesday shot up to Rs 25 crore from Monday's Rs 14 crore.
With every addition to the list of traded stocks, the number of scrips hitting new highs has been rising. Some brokers call the new trend as an ``exit rally'', providing opportunities forinvestors who have been stuck to get out.
Rajiv Sampat at Parag Parikh Financial Advisory Services says ``when everybody is bullish, it is time to be cautious. It is the right time for retail investors to get out of the B2 stocks which until recently was looking a bad investment." "At the current levels, the operators and the domestic institutions are not selling, and the selling by the FIIs is not aggressive. Once these three groups start unwinding, retail investors would miss the opportunity to exit.''
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.