After banks, riggers target power stocks

From a recent low of Rs 206.50 touched on March 31, the BSES stock has gained 25.69 per cent. BSES was trading at Rs 222.05 on April 29. Tata Power has gone up from Rs 117.30 on April 29 to Rs 143.80 on June 11. CESC has shot up from Rs 16.25 on April 29 to Rs 35.45, showing a jump of 118 per cent. Even power equipment firms have been zooming on the bourses in huge volumes. Bhel shot up from Rs 228.80 to Rs 264.60. Alstom moved up from Rs 24.75 to Rs 38.25, a jump of 55 per cent. Gujarat Industrial Power has also soared in a similar manner.

Said a market source: “Though market operators talk about the passage of the Electricity Bill in Parliament recently, reforms in the sector are not going to be smooth. Some operators are accumulating power stocks in the name of the new Bill and reforms.”

“Some operators rigged the bank shares recently. Even government stocks like Indian Oil were also manipulated. History is repeating in power stocks,” said BSE dealer Pawan Dharnidharka. Bank shares had fallen after Finance Minister Jaswant Singh asked market regulator SEBI to look into rigging in bank shares.