Stock Alert: Financial Technologies rebounds 40% on heavy volumes

The stock has recovered nearly 56% from its recent low of Rs 106 touched on August 2 on BSE.

Financial Technologies (India) is trading higher by 11% to Rs 168, bouncing back 39% from intra-day’s low, after its subsidiary - National Spot Exchange Ltd (NSEL) - said most of its trading members had proposed settling outstanding contracts over several months after the commodity exchange suspended trading in most forward contracts.

The stock has opened 10% lower at Rs 136 and fall further to Rs 121 in early morning deals on BSE. The stock bounced back nearly 40% to hit a high of Rs 169 during intra-day trades. The stock has recovered nearly 56% from its recent low of Rs 106 touched on August 2.

A combined 7.74 million shares already changed hands on the counter till 1041 hours against an average 7 million shares that were traded daily in past two weeks.

The payment involving Rs 5,500 crore of various investors was choked with 24 traders, of which the exchange has drawn a formula for 21 with a potential recovery of Rs 5,288 crore. Negotiations are still on with the remaining three, involving Rs 311 crore of payment dues, the Business Standard report suggests.

“We are fully committed to ensuring proper settlement of all outstanding obligations and comply with the directions issued by the government in this regard. We are confident of settling all issues as per the rules and by-laws of the exchange,” said Anjani Sinha, managing director and chief executive of the exchange.

Earlier, Financial Technologies had plunged 80% from Rs 542 after NSEL suspended trading in most forward contracts on last Wednesday (July 31).

Shares of the Multi Commodity Exchange (MCX) has extended its losses and locked in lower circuit for third day in row, down 10% at Rs 369. The stock was currently trading at its record low level since listing, tanked 47% in past four trading sessions on BSE.