IL&FS group stocks continue to rally; surge up to 20%

Shares of IL&FS group companies continued to remain in huge demand Wednesday, surging up to 20 per cent.

The scrip of IL&FS Engineering and Construction Company zoomed 19.79 per cent, IL&FS Transportation Networks surged 19.29 per cent and IL&FS Investment Managers soared 9.91 per cent on BSE.

Shares of IL&FS group companies had surged up to 20 per cent Monday also.

In a rare move, the government superseded the board of IL&FS on Monday against the backdrop of debt defaults by some of its group entities that triggered fears of liquidity crunch.

As per its latest balance sheet, IL&FS Group has infrastructure and financial assets exceeding Rs 1,15,000 crore and is facing tremendous debt pressure and struggling to service around Rs 91,000 crore in debt.

Meanwhile, the BSE 30-share barometer plummeted 550.51 points or 1.51 per cent to end at 35,975.63.

"Despite the government's decisive move about IL&FS, the markets are under relentless pressure on the back of crude oil touching multi-year highs and the rupee making fresh all-time lows," said Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth), Centrum Broking Ltd.

Domestic markets were closed Tuesday on account of 'Gandhi Jayanti'.