B1, B2 Volumes Up 121% In A Month

The combined weekly average volumes in B1 and B2 groups on the Bombay Stock Exchange (BSE) has increased by a whopping 121 per cent over one month.

For the week ended May 28, 2001, the combined weekly average turnover of B1 and B2 groups was Rs 49.95 crore, which has more than doubled to Rs 109.44 crore for the week ended June 22, 2001.

The increase in turnover has seen the share of these groups climb from 3.3 per cent of the total BSE turnover a month ago to 10.1 per cent in the previous week. Volumes in number of shares traded increased 17.7 per cent from 155.2 lakh shares in the week ended May 28 to 182.7 lakh shares in the week ended June 22.

Dealers said the substantial increase in volumes in B1 and B2 groups reflects the shift of investor focus out of the A group.

According to market sources, "the shift of A group scrips to the compulsory rolling settlement cycle from July 2, 2001, is perhaps the driving force for better volumes". The B1 and B2 scrips would continue on a weekly settlement cycle.

A surge in volumes has, however, been distinctly observed in the top 10 scrips indexed on the basis of turnover. These 10 scrips now account for 77 per cent of the combined weekly average volume of the B1 and B2 groups. Their share in combined average volumes was just 45 per cent a month ago.

Select media scrips have also been lately reporting record volumes. Scrips such as Balaji Telefilms, Tips Industries, Mukta Arts, Crest Communication, G V Films and Tata Infomedia, have managed to place among the investors' fancy list.

The interest was not only restricted to a few of the media scrips, but also spread out to old economy scrips such as Kalyani Brakes, Foseco India, Bayer India and Tata Metaliks. VST Industries' volumes went up from Rs 2.42 lakh to Rs 11.26 lakh.

Godfrey Phillips, Tips Industries and Visual Soft Technologies were among the few who, despite increase in volumes, saw a drop in market valuation during the period.

Public sector units have also attracted volumes, with National Aluminium and IBP recording a substantial increase.