Entertainment shares take further beating

“Lack of fundamentals coupled with continuous speculation had led these shares to touch a dizzy heights. As some big time speculators are getting out.. share prices are falling,” says Venkat Aiyar, a Mumbai-based BSE member.

“Market operators are worried over the scope of Mumbai police investigation which can be further extended to these companies too. Hence, the unloading by bear operators,” he said.

Shah and the big bull had invested huge sum of amounts to these shares to artificially jack up the prices, brokers said. The big bull had, however, denied these reports in a communication to this newspaper.

As a consequence of falling share price, the market capitalisation of these scrip has melted to new lows in the past two days, say brokers. The outlook is expected to be grim as the ongoing investigations have spoiled the party.“Shah had invested a huge sum of amount through in the vyaj-badla route in the entertainment stocks. Any setback to Shah will stop the rise of these shares. Hence, the mood has turned bearish,” said Pawan Dharnidharka, a Mumbai-based market analyst.

“We will have to wait and watch.. the outcome of these shares future will depend on Shah’s fate,” he added.