Well surprising isn’t it? A blogger spreading out news has caused Adani Group a huge intraday fall on the exchange last week. This all happened earlier last week on Tuesday when the rumour of Adani’s arrest in the missing state NCP leader Jayanti Gohil case caused panic among the among stock brokers across country. This resulted in crash in stock prices of Adani Enterprises, Adani Ports & SEZ and Adani Power. Impact of the slide left Adani Enterprises at a five-year low on the exchanges reports DNA.
A stock market expert from Vadodara flashed the information, ‘Believe it or not: Our Ahmedabad Bookie says: Mr. GAUTAM ADANI is been arrested? What will happen to ADANI STOCKS? Something related to Kidnapping of Congress Leader…We are Hearing (Rumours or Facts??) Let’s see…’. After the write up was flashed on the blog at 14.59pm, it spread like a wildfire among brokers. However, later in the evening the information on the blog was removed, but the damage had been done. [source]
Stock Markets reacts to all kind of news. Good news results in bull trend and bad news results in bear trend. Even before this news was validated the scrips hit a 5 year low. On single day, Adani Enterprises was crashed by 8.43% or Rs17.90 and closed at Rs194.55 per share by the markets closed on Tuesday. For first time since 2008, the stock price of Adani Enterprises has fallen below Rs200 level.
Brokers say that even the first quarter were not encouraging which added fuel to the fire.
Along with the price fall we also saw increase in volumes. DNA also reports that strict action would be taken against the manipulators.
Information should be available at a central location with no time gaps. This brings into picture the Efficient market hypothesis theory.
A perfect case study can be made out of this on Public Relations and Stock Price Movements. Media today has a big role to play! What say?