Twist in the tale of Himadri Speciality Chemical stock price surge

Indian markets extended its fall for the second day in a row on Thursday. Nifty slipped below the 15,700 mark. Despite the down day, the stock-specific action continued on D-Street.   

One such stock, which outperformed the market as it gained nearly 7.74 per cent, was Himadri Speciality Chemical Limited (HSCL). The stock opened the session with marginal gains but soon after that, it began to move higher and that too, with a spike in volumes. The stock made a high of Rs 62.15 and gained as much as 15 per cent at the high of the day. Thereafter, the stock took a pause but in the second half of the trading session, the stock trimmed its gains and closed around the levels of Rs 57.80 with a gain of 7.74 per cent. Moreover, the volumes recorded were the highest-ever seen in a single trading session, in a long time.   

Hence, the question is - what happened that the stock, which was aiming for the sky, suddenly changed its course and closed significantly lower from the high of the day? The answer perhaps lies in the press release, which was issued by the company, clarifying the rumour that was being circulated on the social media platforms. The rumour was, “HSCL likely to announce a strategic tie-up with Tesla for batteries”. However, as a matter of fact, the company had no such discussions for any tie-up with Tesla.