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| High-flying Akruti stock crash-lands |
| BS Reporter / Mumbai Mar 27, 2009, 00:50 IST |
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Sharp movements in the Akruti City counter continue to baffle investors. After the stock price more than doubled between March 9 and 19, when it rose from Rs 994.70 to Rs 2,227.50 (123 per cent) on the Bombay Stock Exchange (BSE), it plunged by 55.06 per cent on Thursday to close at Rs 819.40.
The fall was due to the fact that the real estate company has been removed from the futures and options (F&O) segment of the National Stock Exchange (NSE).
In a circular issued on March 19, the exchange told its members that fresh monthly contracts would not be introduced in Akruti after expiration of March 2009 contracts. However, the security will continue to be traded in the cash market.
Even on Thursday the difference in prices of the Akruti City stock between the NSE and BSE offered a great arbitrage opportunity to traders.
While the stock closed at Rs 819.40 on BSE, it ended the day at Rs 999 on NSE, a difference of Rs 179. While the intraday highs on both the exchanges were the same, there was a difference of Rs 30 in the intraday low prices. Akruti’s intraday low on BSE was Rs 670 and on NSE it was Rs 700.
Akruti’s fall had a ripple effect on the realty index. BSE’s realty index fell 4.54 per cent or 76.73 points in a rising market to close at 1,614.94 points. The stock also fell by 45.29 per cent on NSE.
Shashi Bhushan, CEO, Way2 Wealth Stock Broking, said, “Currently, there is no floating stock left in Akruti City. From tomorrow it is going to be removed from NSE’s F&O segment, hence there was a lot of short covering.”
In the past one year, when most of the real estate stocks suffered heavily due to a change in perception and liquidity issues, Akruti City had risen constantly.
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