Market Movers: Market Movers: Shrewd promoters making most of market crash, increasing their stake
Promoters of Prakash Industries acquired 2.60 lakh shares via open market on Friday.
Buying on Friday comes after its shares tanked 13 per cent a day before. This comes on top of 2.5 lakh shares they reportedly bought at Rs 64.95 per share on Monday.
Promoter buying at a time when share prices have been crumbling is a win-win strategy for the stock. One, it shows the confidence of its owners in the company’s business. Two, it leads to more retail buying, pushing stock prices higher.
The same happened with Prakash Industries. After the block deal, the stock ended up 12.52 per cent at Rs 61.10.
Cementing its place?
Recently debuted cement maker Nuvoco Vistas Corporation also saw a massive block deal on Friday that lifted share price by 10 per cent. As per reports, 1.34 per cent of equity exchanged hands, valuing the deal at around Rs 145 crore. It was not clear who bought or sold these shares.
The stock has fallen over 40 per cent in the last three months. Analysts, though, are quite bullish on the counter despite its weak performance ever since listing.
Data available on the Refinitive database shows 12 analysts have consensus recommendations of buying the stock.
The median price target of the stock is set at Rs 552, meaning an upside potential of 72 per cent. The highest estimate at Rs 762 sees 137 per cent upside and even the lowest estimate of 400 means 25 per cent potential upside.
New age stock languish
Even as most stocks saw heavy buying and recovered from Thursday’s onslaught thanks to low-level buying, some stocks failed to move despite positive news as they found very few takers. Prominent among them were Nykaa, Zomato and Paytm.
In the upcoming semi-annual index reviews, they are set to become part of the Nifty Next50 index, leading to inflows of $33 million, $11 million, and $9 million, respectively.
However, even this could not lift them significantly.
Zomato ended the day up 0.64 per cent, Paytm rose 1.58 per cent, but Nykaa closed down 0.39 per cent.
