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| The Bombay Stock Exchange (BSE) announcement on September 6 that 555 stocks will be shifted to the Z category, effective September 10, has already impacted the trading volumes and the prices of these stocks. |
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| Of the 555 stocks to be shifted to the Z group from today, 518 are actively traded on the BSE, while as many as 26 scrips have not been traded during the last two days. |
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| The remaining 11 scrips were not traded in the last 15 days. |
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| The combined trading volumes which moved up from 55.79 lakh shares on September 5 to 90.41 lakh shares on Monday September 8 dropped sharply on Tuesday to 70.94 lakh shares. |
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| The drop in volumes had a cascading effect on the market price of these stocks. Already the market value of these stocks has declined on average by 11.3 per cent in the last two days, with the combined market capitalisation falling from Rs 5,920 crore on September 5 to Rs 5,252 crore today. |
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| Nevertheless, the market value of as many as 439 stocks has declined in two days, 64 scrips have appreciated in these two days. |
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| The fall in market value has ranged between one per cent and 35 per cent while the value appreciation in gainer stocks has been between one per cent and 29 per cent. |
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| Of the 555 scrips to be traded under the Z category, as many as 481 are now traded under B2 group while the remaining 74 are traded the B1 category. |
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| Interestingly, as many as 418 scrips in this lot are currently valued between Re 1 and 10 and rest (around 137) are quoted between Rs 10 and 60. |
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| Interestingly, the stocks which are shifted to the Z category had an almost vertical price run during the last three to four months. |
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| Recron Synthetics, a Reliance group company, saw a dream price run. The stock which declined to a 52-week low of Rs 3.20 as on June 9, 2003 shot up to an all-time high of Rs 62.05 on September 9, 2003. |
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| This means, the Recron scrip has appreciated by a whopping 1,839 per cent in just three months. |
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| Ennore Foundry, which was down to a 52-week low of Rs 7.00 on March 13, 2003 shot up 550 per cent to close at Rs 45 on September 9. Torrent Cables appreciated 620 per cent from the 52-week low of Rs 4.75 to close at Rs 34.20. |
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| Panchmahal Steel saw distress sellers selling the stock at Rs 0.35 on February 24, 2003. |
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| But they must be shocked to see the stock appreciating a whopping 7,171 per cent from that level to close at Rs 25.45. The steel tag must have helped the company get such valuations. |
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| Vallabh Steel is a similar story to tell. The stock fell to a 52-week low of Rs 4.30 on April 10, appreciated 411 per cent since then to close at Rs 21.95 today. |
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