Yesterday, I reported that the punters were sporting glum faces after the heavy losses caused by Fulford canceling its delisting proposal.
Today, the story is the reverse. The punters are beaming with joy because all the delisting stocks surged and posted hefty gains.
Leading the charge was Essar Oil. Over the past few weeks, the stock has been very weak after SEBI directed it to put its delisting proposal “on hold” to await clarity over the new norms. Today, the stock caught everyone unawares by surging 20%. The volumes were extraordinarily high with 1,443,478 shares at BSE as against the 5 day average of 192,008.
Panasonic Appliances followed close behind with a surge of 5%. The other delisting stocks, Essar Ports, Essar Shipping, Manjushree Technopack, Fulford India, Insilco etc also posted handsome gains each.
What caused the spectacular gains in Essar Oil and the other stocks is a big mystery. There is no official communication from SEBI regarding the delisting proposal.
When I last checked, the punters at the Essar Oil counter were floating various theories such as that it is short covering or that it is because the falling crude oil prices auger well for the company.
Lets hope for the punters’ sake that the good times last a bit longer to enable them to bail out in one piece!