DNA Money Edit: Rumours hit D-Street again

We have seen this happening during every previous sustained bull run and it's happening once again, only the modes of dissemination of rumours have evolved.

On the day equity markets touched a record high, rumour-mongers turned bold enough to spread preposterous, fake news through SMSes that a well-known logistics firm - VRL Logistics - is picking up stake in a company called "Shri Krishna Prasadam" that trades in rice. When asked by the market regulator, VRL clarified it was "a rumour, wrong and has no merit".

Prasadam's scrip didn't correct even after the clarification and went on to close with a gain of about 2%.

And over the past three months, the stock has appreciated from Rs 22 to Rs 38.5 before closing on Tuesday at Rs 31.60. Such brash and fearless fake news peddlers are winning as the game of self-fulfilling prophecies is easy to play and win in a market where there are enough gullible investors to believe they have missed the bus and need to clutch on to the next dip to jump on the bull. Subscribe to bulk SMSes at dirt cheap rakes, speculate handsome gains in a penny stock and there would be enough number of believers to buy that stock, thus taking it to the target price set.