Goenka Diamond tanks 20% on IB report

Goenka Diamond and Jewels has hit the lower circuit of 20% at Rs 162 on reports that the Intelligence Bureau (IB) has named the company of illegal manipulation, driving up share prices through the creation of false volumes.

A combined 219,155 shares have already changed hands on the counter so far, and there are pending sell order for 131,586 shares on the BSE and NSE.

“Ketan Parekh - the broker who was banned from the market after the 2001 securities scam is behind possible stock price manipulation,” the report suggests.

The stock of apparel and accessories maker has zoomed over seven-fold in  2012, touched 52-week high of Rs 204 on Friday, July 6 from Rs 28.20 at the beginning of calendar year.

The report also includes the six other companies, including Dewan Housing Finance Corporation, Orchid Chemicals and Pharmaceuticals IVRCL, Pantaloon Retail (India), Tribhovandas Bhimji Zaveri and GMR Infrastructure, which are down by 3-8% on the Bombay Stock Exchange.