Promoters of at least 55 companies have bought shares of their companies from the open market since January 1. Companies have taken this step due to fall in share prices in the last two months.
Image Credit source: Representational Image
Promoters of at least 55 companies have bought shares of their companies from the open market since January 1. Companies have taken this step due to fall in share prices in the last two months. UPL, HCL Tech, Aarti Pharmalabs, Bajaj Holdings, Quess Corp, Eris Lifesciences, Jindal Saw, Welspun Corp, Sobha and Zensar Tech are among the companies whose promoters made purchases during this period. This information has been obtained from the deal data available on the stock market.
stock market crash
The Nifty, Mid Cap and Small Cap indices have seen a decline of 3 per cent to 5 per cent since January 1. There has been a sharp decline in some small and mid cap stocks between 10 and 35 per cent.
In February, UPL’s promoters bought 37 lakh shares in the agrochemical company from the open market for Rs 531 crore. He increased his stake in the company to 2.29 per cent in the December quarter through multiple bulk deals.
Shiv Nadar’s Vama Sundari Investments bought 1.8 million shares of HCL Technologies in February for Rs 199 crore. The shares of the IT company have seen a decline of 22 per cent in the year 2022. At the same time, the shares of HCL Technology have gained four per cent this year. The promoters of pharma company Aarti Pharma Labs have bought shares worth Rs 47 crore in the last two months. Whereas, Bajaj Holding and Quess Corp have bought shares worth Rs 23 crore and Rs 20 crore respectively.
What signal do you get?
The purchase of shares by the promoters is considered as one of the best signals of value in the company. This is because the promoter has the best knowledge about the prospectus of the company. And he knows when the company is overvalued or undervalued.
According to experts, due to market fluctuations, the connection between the stock price and the fundamentals of the company can be lost. In general, it is normal for investors to take advantage of such opportunities. Experts say that promoter investors have a longer investment horizon than this and have better business acumen in comparison.