PC Jeweller: speculative interest skyrockets after shares plunge

PC Jeweller has been under the media spotlight since April 20, when its shares experienced a steep price correction, and now analysis have remarked that there seems to be high speculative interest in the business.

PC Jeweller’s stock is currently under an F&O ban which may end on Monday - PC Jeweller- Facebook

The jewellery business’ stock corrected approximately 63 percent on April 20 from 295.8 rupees per share to 110.65 rupees per share on May 2. This was because funds managed by as Fidelity International decreased by two thirds after a massive offloading reducing its stake to 3.5 percent, causing speculation that one of the business’ promoters had sold the shares after giving two percent of shares to an unnamed relative. However, Garg has assured that no further gifts have been made.

The Economic Times has received opinions from analysis including Rajesh Baheti of Crosseas Capital and Mayur Poddar of Markethub Stockbroking which state that the current share performance of PC Jeweller indicates skyrocketing speculative interest.

The Promoter for PC Jeweller, Balram Garg, recently told the Economic Times that business in PC Jeweller retail outlets was “robust” and that the stock’s performance has not affected actual jewellery sales. However, it is still unclear what the stock’s rocky performance and gifting controversy means for the business.

PC Jeweller’s stock is currently under an F&O ban which means that clients cannot initiate fresh derivative positions but are allowed to square off existing positions. The F&O ban, however, is expected to be lifted on Monday.

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