With stock exchanges out to curb excessive speculation, analysts expect two media shares Balaji Telefilms and Mukta Arts, to lose their sheen in the coming weeks. To be transacted on a trade-to-trade basis from August 20, both are expected to lie low -- after weeks of volatile activity -- with high selling pressure when the market opens on Thursday.
BSE and NSE moved in on Tuesday to curb excessive speculation on these shares and announced that all transactions in these two shares will have to be settled on a trade-to-trade basis, wherein every trade would be delivery-based.
This means, unlike in the past, when those dealing with these scrips had a five-day settlement period, now each transaction has to be squared off before end of each day.
As reflection of the shape of things to come, as the news of imposition of trade-to-trade settlement filtered in on Tuesday, Balaji Telefilms closed 8 per cent down at Rs 196.40 with a volume of 45.24 lakhs shares on BSE and 58.99 lakh shares on NSE.
Mukta Arts also went down 8 per cent at Rs 96.70 with a combined volume of 47 lakh shares of BSE and NSE.
Balaji has been doing well with several of its TV serials doing well on the TRP charts across a number of channels. Similarly, Mukta Arts did take a beating when its latest production Yaadein did not get good response in the domestic country. However, the scrip bounced back with exceptional performance of the movie in overseas territories.
Many analysts believe that the reaction of the institutional investors who have picked up the scrips in recent weeks would be a key factor deciding how the prices of two stocks behave.
Some analysts believe that the Zee counter would be a keen watch on Thursday. On Tuesday, Zee scrips saw a lot of activity in both NSE and BSE.
On NSE, a total of 1.5 crore shares were traded compared to 34.24 lakh shares on Monday.
The stock closed on Tuesday, up 12.6 per cent at Rs 101.5. Similarly, the BSE too saw 1.15 crore Zee shares being traded with the stock closing on Rs 101.5, up 12.7 per cent.
Industry sources point out that these movements follow unconfirmed news that promoters of Zee Telefilms have lined up the remaining amount of the Rs 220 crores that it had borrowed from ZTL.
This amount was further lent to Ketan Parekh for picking up equity stakes in some media companies such as B4U and ABCL.