Stock Under Rs 40 Approves 1:1 Bonus & Stock Split From Rs 10 to Re 1

Global Capital Markets has approved a stock split from Rs 10 to Re 1 and also announced a bonus issue of shares in the ratio of 1:1. Here are some of the details.

Global Capital Markets: Bonus and stock split

The company in a release said that the board has approved the sub-Division of face value of Equity Shares from Rs. 10/- to Rs. 1/-; 2. Issue of Bonus Equity Shares of Rs. 1/- each in the ratio of 1:1 (i.e. bonus issue of 1 share for every 1 share held by members as on record date) which will be decided in due course. The stock of the company closed 5% lower on the BSE. The stock of the company fell 5% despite the announcement of the bonus and stock split. The shares of the company were last trading at Rs 34.70 on the National Stock Exchange.

52-week high and low of the stock

Global Capital Markets stock had hit a 52-week low of Rs 3.79 and has since jumped to Rs 34.60. On Friday, it hit almost the lower end of the circuit filter. Investors are advised caution as the stock has run-up sharply. The market capitalization of the company is around Rs 86 crores.

Market outlook

Meanwhile, according to Chandan Taparia, Head - Technical & Derivatives Research at Motilal Oswal Financial Services, Nifty index has been consolidating in between 17777 to 18250 zones from the last twenty trading sessions where declines are being bought but follow up activities is missing at higher levels.

"It made four attempts to get a range breakout on higher side in the last five weeks but absence of buying interest was taking it back to 17777-17850 zones. It failed to surpass its falling supply trend line by connecting its higher peaks of 18887, 18696 and 18201 zones. Nifty needs to hold 17777 zones for any kind of bounce back and relief in market sentiment after the recent price structure. It concluded the January expiry with losses of 1.64% and corrected by around 300 points on expiry to expiry closing basis from 18191 to 17891 levels and formed a Bearish candle (expiry to expiry chart). The open interest activity in Nifty decreased by 9.23% in the series with a price fall by 1.64% on an expiry-to-expiry basis. Rollover of Nifty stood at 79.2%, which is slightly lower than its quarterly average of 80.1%. In line Rollover data and slight lower roll cost suggests that meaningful declines could be bought but market range can shift lower with capped upside after the recent price development," he said.

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