Wockhardt stock goes on a roller-coaster ride

It was a roller-coaster ride for traders betting on Wockhardt shares on the day the company declared its Q4 results. Market grapevine has it that a few traders got a whiff of Wockhardt’s likely losses in the morning and began dumping the shares.

The company reported a consolidated net loss of Rs 188.8 crore for the quarter, against a profit of Rs 166 crore. But, when these traders came to know that the losses were on account of forex and debt repayment of Rs 450 crore, they rushed to cover their short positions.

A large US investment bank, which remained fairly insulated from the credit crisis in 2008-09, accumulated large positions in the pharmaceutical company through its offshore account when the stock declined earlier in the day. Shares of Wockhardt rose 8% to close Rs 717.75 on Tuesday, off the day’s low of Rs 631.