'Market speculation beyond permissible levels'

New Delhi: The Finance Ministry has said that the speculation beyond limits is moving the markets. But the market fundamentals are still strong.

Speculation in the stock markets is beyond permissible levels. Sources told Network 18 that this was the gist of a report made to the parliamentary committee on finance.

The panel was discussing the recent volatility in the stock markets.

Top finance ministry officials made a detailed presentation to the panel, and discussed big names playing the stock markets.

But the panel was also told that market fundamentals are very strong and there was no need for panic.

Meanwhile, Keeping the market mood up, Retail Investors holding Reliance Power finally have a reason to smile.

The stock shot up 10 per cent this morning after Anil Ambani announced he would give bonus shares to all holders of the stock to compensate for losses suffered after the share price dropped sharply since trading began last Monday.

All together, retail investors lost a total of over Rs 475 crores at the time of the IPO. At 140 crore rupees it was India's biggest.

Over four million shareholders are estimated to benefit from the bonus offering.

Reliance Power has also demanded an investigation by regulator SEBI into what it sees as market manipulation by its rivals to hammer down all ADA stocks.