hi
Noticed a trade volume of 46 lakhs for ABB india on 21st Feb 24, result was announced today, its parent in switzerland acquired a new company, but the volume still looks way too high.
Apart from some algorithmic trading trying to manipulate it, is there any other explanation.
The reason this volume looks very high is
- no block/bulk deals that are reported yet
- one third of all retail holding will need to be traded today for this quantity (given stock holding and stock count and assuming promoter/fii/dii will not sell other than in block/bulk deal,
detailed match)
detailed math
total stocks = market cap/stock price ~ 105k cr/5k ~ 21 cr ~ 20 cr
tradable holding (only retail) = 0.075 * 20 cr = 1.5 cr
total traded = 46 lakhs ~ 50 lakhs
so 50/150 ~ 1:3 retail shares were traded. Have not seen such volume actions before. Am I missing something. The math uses a lot of rounding to make it easier to follow. Am a noob so dont know enough about this, any info will be useful.
Thanks
Apurba
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