Z group m-cap zooms 350%

Mumbai, Feb 25 | Updated: Feb 26 2005, 05:43am hrs
The markets are booming, the sentiment is bullish, the benchmark Sensex is soaring and the Z group stocks are riding the wave. Z comprises scrips that have been blacklisted for not complying with listing norms.

B1, B2 and S group companies have risen a meagre 2-20% compared with a surge in Z group.

In less than two months, the market capitalisation of the group has zoomed by a massive 350%. The m-cap of the Z group stocks was pegged at Rs 20,758.75 crore on February 25, compared with a paltry Rs 4,511.50 crore as on January 3.

Analysts are of the view that participation has increased in the market and investors are looking for newer avenues. According to Kashyap Pujara, associate vice president (portfolio management) at Sushil Finance, It is clear from the increase in m-cap of the Z group that there are more participants looking at this group. However, the increase doesnt seem to be across the board in the group. There are some stocks that have been doing well in the recent past. Investors should be cautious while investing in Z group.

Some of the Z group stocks have moved by over 200% in less than a month. Numech Emballage Ltd soared by 438% between February 1 and February 25. The stock closed at Rs 5.53 on February 25, compared with Rs 1.26 on January 3. Similarly, ICNET Ltd (up 377%; from Rs 6 to Rs 22.64) and Allianz Capital and Management Services Ltd (up 268%; from Rs 5.52 to Rs 15.94) posted hefty gains in the same period. Six stocks in the same group moved in the range of 100-200%. Around 30 stocks posted negative gains in the same period.

S group moved from Rs 26,430.33 crore on January 3, 2005 to Rs 31,365.13 on February 25. B1 and B2 rose from Rs 1,80,779.69 crore and Rs 13,892.10 crore to Rs 1,83,589.61 crore and Rs 14,402.10 crore, respectively, between January 3 and February 25.