B2 group stocks spurt 24% in a day

Nitin Mathur

New Delhi, May 17: EVER heard of stocks like Shree Precoated Steel, TPI India or Relish Pharma? Well, it may be the right time to check them out. About 20 such scrips from the B2-group have spurted 23-24 per cent during a single day’s trading on May 17, amidst ballooning volumes. These 20 stocks belong to the B2 group and were quoting close to Rs 5 as on that date.

Brokers feel that the proposed ban on deferral products and introduction of rolling settlement in 400-odd prominent scrips from July 2, has lead to the spurt in lesser known scrips which may continue to be under weekly settlement for some more time.

According to a Delhi-based broker, “Presently, the activity is concentrated in the A-group counters, as these stocks offer chance of speculation through deferral products like ALBM and BLESS. After the ban, activity will spill over scrips from other groups. Thus, expectation of higher activity and liquidity may be perking up prices in these scrips.”

He also added that in the past the scrips, in which rolling settlement was introduced, witnessed decline in volumes and prices. Thus, operators may be looking at scrips, which are not expected to come under rolling settlement initially.

However, brokers caution that the interest may be purely speculative. Nonetheless, it can provide the much awaited exit opportunity to the investors.

Brokers also added that companies with foreign collaborations have also been attracting attention lately as the government has relaxed the FDI limit in some sectors.

Shree Precoated Steel, which topped the list of gainers has collaboration with Cockerill Mechanical of Belgium. The scrip is quoting at Rs 3.8 as on May 17 and had spurted 24.59 per cent during the day. Volumes in the scrip also shot up from 100 shares traded on May 16 to 2,100 shares on May 17.

Stock of TPI India, a company involved in plastic packaging business, spurted 24.56 per cent from Rs 2.85 on May 15 to Rs 3.55 on May 17. The company has a tie up with Bulk Lift International of USA.

Two of the lesser known pharmaceutical companies, Relish Pharma and Vista Pharma also shot up over 24 per cent. Relish, which was incorporated only in 1998, witnessed 2,500 shares changing hands on May 17, as against 800 during the previous day.

Devarsa Gas-chem, a LPG bottling company promoted by Mr Ashok Jain also spurted 24 per cent during the day. Its scrips is currently trading around Rs 2.5.

Other scrips which have witnessed sharp gains include Garware Shipping, Swil Ltd, Goldcrest Finance, Gopala Polyplast and GKW Limited.