Stock Market: Wealth destroyers now running high on bourses
Bombay Stock Exchange (Image credit @BSE)
By Our Special Correspondent
New Delhi, September 6: Uninitiated in the stock markets burn their wealth and even the borrowed money, chasing the day dream of becoming a millionaire by investing in stocks which are pumped and dumped by the market operators.
In the 2010s, lakhs of investors lost their 95 per cent and more money by betting on stocks such as Suzlon Energy, JP Power, Omaxe, Reliance Power, Gayatri Projects, Dish TV and so on. The list will be too long.
But when the equity markets come alive with momentum, such shares, which now have become penny stocks, have again begun running on the bourses, giving hope to the jilted investors that may be this time they would make 100 times more money.
But the market experts warn that such positive momentum in penny without any significant changes in fundamentals are the outcome of the operators’ playbook, and the trap must be avoided.
Take the case of Suzlon Energy. This company was numero uno destroyer of wealth of the investors, with the management diluting the equity value by borrowings to the extent that it became a penny stock.
Some of the investors who run Mother Dairy depots, runs a kirana shop still hope that Suzlon Energy will give them a manifold returns. This was a trap in 2010s, and remains so in 2020s for the uninitiated.
Suzlon Energy share price has gone up by over 26 per cent in the past five days.
Reliance Power was the wrecker in chief of the stock market, decimating the bourses, with its obnoxious valuation of the IPO and the subsequent collapse on listing.
Reliance Power in the past five days has gone up by 33 per cent, while it has netted a gain of 64 per cent in the past one month.
JP Power is another stock which has gone up by over 15 per cent in the five days. This was the darling of the brokers in the 2010s who recommended it more often on television.
Peninsula Land is another such story, which in the past five days has gone up by over 13 per cent and 75 per cent in the last one month.
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