Close on the heels of the National Stock Exchange (NSE) alerting investors to exercise caution, the Bombay Stock Exchange (BSE) has also warned investors through a leading financial daily not to get swayed away by misleading tips and advertisements about stocks.
This comes in the backdrop of many small and mid cap stocks witnessing huge rise in their share prices without any changes in the company?s basic fundamentals.
Kalyan Bose, head-corporate affairs, BSE, said, ?There is nothing unusual in the advertisement. This is part of our investor education programme campaign, which we do periodically from time to time even in vernacular dailies.?
Deven Choksy, MD, KR Choksy Securities, said, ?Such an advertisement would definitely alert investors about stocks that they are investing in since some tips or recommendations coming from different quarters are deliberately done to push the stock price.? Others reckon that there has been a five-fold increase in individual speculative activity, especially by high net worth individuals, in the market. Daily trading volumes have risen from Rs 1,500 crore levels to beyond Rs 6,500 crore levels on the BSE.
Meanwhile, the domestic equity bourses closed the day on a flat note amidst high volatility. The 30-share Sensex came off sharply from its initial gain that it had made tracking positive global markets to end the day at 19,091.96 points, gaining marginally by 12.32 points or 0.06%. The Sensex had touched an intra-day high of 19,397.76 points after opening the day with an upward gap of 175.75 points at 19,255.39 points. On the other hand, the Nifty closed at 5,751.15 points, gaining 8.85 points or 0.15%.
As per the provisional figures released by the stock exchanges, FIIs were net sellers to the tune of Rs 1,454.06 crore.