Mid-cap stocks shifted to 'T' group tumbles

A host of mid-cap stocks which were shifted to the trade-to-trade segment (T group) on Wednesday crashed on the stock exchanges, further dampening investors' sentiment.

According to market sources, the move could be seen in the light of the Global Trust Bank fiasco and an unprecedented rally in various mid-cap stocks since late June 2004.

The Bombay Stock Exchange (BSE), however, in a press release, said, "The move is part of a surveillance review and pursuant to the meeting with the Securities and Exchange Board of India to ensure market safety and safeguard the interest of investors. The BSE decided to transfer 51 scrips to the T group and they would be traded and settled on a trade-to-trade basis with effect from August 16, 2004."

The National Stock Exchange, meanwhile, has shifted 33 scrips to the T group with effect from August 16.

In the T group, each trade has to result in delivery, and no intra-day netting off of positions is allowed.

Select steel and media scrips, which have been shifted to the T group, crashed on the bourses.

Among the major losers were Lloyds Steel, down 18 per cent to Rs 5.73, Crest Communications (down 18 per cent to Rs 42.25), Mukand (down 12 per cent to Rs 20.30), Nocil (down 10 per cent to Rs 16.65), BPL (down 9 per cent to Rs 36.25), Alstom (down 9 per cent to Rs 45.30), Uttam Galva (down 10 per cent to Rs 20), Hindustan Motors (down 9 per cent to Rs 9.68), and Videocom Appliances (down 8 per cent to Rs 16.05).