Friday, March 29

Tag: Finsec Law Advisors

Prescient Messages About Indian Companies Circulate In WhatsApp Groups
BUSINESS

Prescient Messages About Indian Companies Circulate In WhatsApp Groups

[dropcap]T[/dropcap]hree days before Dr. Reddy’s Laboratories Ltd announced quarterly results this summer, a message circulated on a private WhatsApp group saying the Indian drug-maker would not post good numbers. Dr. Reddy’s was going to report a loss, according to the message on the “Market Chatter” group, which was posted on July 24 from a mobile phone number that Reuters traced back to Nishant Vass, an auto analyst at ICICI Securities, a leading Indian brokerage. The WhatsApp group had 45 members, mostly traders. The loss would have been a surprise to many analysts, as consensus forecasts compiled by Thomson Reuters at the time showed expectations of a profit of 3 billion rupees. The message proved prescient: On July 27, Dr. Reddy’s reported a loss of 587 million rupees (9.05 millio...