Markets drop as investors dump firms with high debt levels, share pledging

The shares of Adani Ports, Adani Power, Jindal Stainless, Reliance Capital, and Suzlon saw heavy selling

The domestic markets witnessed a sharp sell-off on Monday with the benchmark indices falling around a per cent and the broader market cracking nearly 2 per cent, as investors turned wary of companies with high debt and promoter share pledging. 

The panic was triggered by developments at the country's largest TV network, Zee, where a sharp fall in shares of the group companies, coupled with high promoter pledging, put lenders, especially mutual funds, in a spot.

While shares of Zee rebounded on Monday, following an agreement with lenders, investors started dumping firms where debt levels and promoter pledging was high.