Jan 15: It could be news about a company investing a major stake in a firm, getting a major order or a term loan that can drive stock prices higher. It may come to you through print media or via SMS or Whatsapp. The only catch is that it is not likely to be true.
Close on the heels of several fake tips circulating in the name of leading brokerages, the fake news about companies could give trouble not only to corporates but also investors who may be fooled into buying more shares in the hope of quick appreciation in price.
Kolkatta based Ejecta Marketing Ltd (BSE:538635) was victim of a fake news spread through SMS which said that it had got an order for digital marketing from a PSU bank. The SMS was accompanied by an advisory to buy the stock but the company has denied having applied or got an digital marketing order. The company formerly called Appu Marketing and Manufacturing Ltd is in the business of distributing coloring materials, pigments, paints, varnishes, rubber chemicals and adhesives to industry.
A leading business daily reported that Ambani is eyeing Jai Corps Stake in NMSEZ but was denied by the company. The news was not attributed to any source or official in Jai Corp. The company couldn’t find any reason for increase in share price on Jan 11.
Similarly the news that Radiant Looks to Buy Max Healthcare Stake was termed as speculative and no deal was negotiated.
There could be different motives for spreading such news on social media and mainstream media, the primary reason being to develop an interest in the scrip and spur buying. Most often they are done without the knowledge of the company. Analysts pointed out that investors need to look at the source of the news, confirm its authenticity before taking any buy or sell decision.