A slew of negative news and ratings downgrade have taken a toll on the Indian equities with 54 stocks seeing at least one-fourth of their market value getting eroded in the past three weeks.
Among the shares trading on the S&P BSE Allcap index, Reliance Infrastructure (RInfra), Manpasand Beverages, Eros International Media, PC Jeweller, Jet Airways (India), Sintex Industries and Kridhan Infra have plunged in the range of 50 per cent to 62 per cent during the period.
Furthermore, Dewan Housing Finance Corporation (DHFL), Jammu & Kashmir Bank, S Chand & Company, Jain Irrigation Systems and Cox & Kings have slipped 30 to 49 per cent in the past month.
Since May 28, the S&P BSE Smallcap and S&P BSE Midcap index have slipped 6 per cent and 4 per cent respectively. In comparison, the benchmark S&P BSE Sensex has lost 1.8 per cent.
Besides RInfra, Reliance Capital, Reliance Communications, Reliance Naval and Engineering, Reliance Home Finance and Reliance Power from the Reliance Anil Dhirubhai Ambani Group (ADAG) have tanked more than 30 per cent. Four ADAG companies reported a combined net loss of Rs 24,025 crore in March quarter. Reliance Capital and Reliance Home Finance are yet to announce their March quarter earnings.
The auditors of RInfra raised concerns about the company's ability to continue as a going concern and said that it does not have sufficient evidence to determine if the result gave a “true and fair” view of the losses and income.
Meanwhile, shares of Jet Airways (India) hit an all-time low of Rs 61.50, locked in lower circuit of 10 per cent today, after State Bank of India (SBI) - led lenders’ consortium moved National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the airline. CLICK HERE FOR FULL REPORT
In the past four trading days, the stock has plunged 44 per cent after the stock exchanges, last week, decided to impose restrictions on its trading from June 28, as part of preventive surveillance measures, to curb excessive volatility.
The company's scrip shall be shifted from rolling segment to trade-for-trade segment, wherein the settlement in the security will take place on gross basis with 100 per cent upfront margin and 5 per cent price band. The exchanges reasoned that the company has failed to provide any prompt or satisfactory response to the clarifications that they have sought from the company with respect to various rumours floating in the market.
“The pessimism stems from no major announcement from the Central Bank and liquidity concerns regarding non-banking finance companies (NBFCs) continue to hurt lending. Also, no proactive interaction by the new Finance Minister sees all eyes on budget with liquidity starved over leveraged companies witnessing collateral selling,” IIFL Securities said in client note.
|Company||Price on BSE in Rs||%|
| Eros Intl. |
|Dewan Hsg. Fin.||114.80||71.90||-37.4|
|B. L. Kashyap||19.50||12.60||-35.4|
|S Chand & Compan||135.05||87.70||-35.1|
|Reliance Nav. Eng||8.00||5.29||-33.9|
|J & K Bank||59.40||40.05||-32.6|
|Cox & Kings||93.35||67.30||-27.9|
|N R Agarwal Inds||301.45||222.85||-26.1|
|LTP: Last traded price on BSE in Rs at 11:21 am.|