Murudeshwar counter caught in buyer frenzy

A sudden flurry of activity has erupted at the Murudeshwar Ceramics counter in the past couple of sessions, resulting in a 42% rise in the stock price. Dealers say that the intra-day circuit filter for the stock was relaxed to 20% a few days ago and that has sparked off the activity.

About 60 lakh shares of the company — over a third of the equity base — were traded on both the exchanges on Friday. Usually, the daily average volume at the counter is less than 75,000 shares. Market observers say the investment arm of a leading corporate and a mutual fund, which between them hold a sizeable portion of the floating stock, are responsible for the frenzy at the counter. It is not clear if they are buying purely going by the fundamental story or in anticipation of some development in the company.