Mid-cap, small-cap stocks crash; regulators begin probe

Shares of a host of mid-cap and small-cap companies today crashed in the stock market, plunging as much as 60 per cent in some cases, amid panic selling on speculations of sale of pledged shares.

Stock exchanges and market regulator Sebi immediately began looking into the matter to probe any possible foul play after a huge sell-off was witnessed in shares of more than a dozen companies towards noon, a senior official said.

While the problems were initially limited to about 10-12 stocks initially, the panic selling was seen spreading to othercompanies from the sectors of affected stocks, he added.

As per the stock exchange data, Core Projects was down 62 per cent, Welcorp was down 25 per cent, while Aanjaneya Lifecare, ABG Shipyard, Flexituff and Gemini Comm were down 20 per cent each.

Besides, shares of Orbit Corp, Eros International Media, Opto Circuits, Saamya Biotech, Videocon Industries and Sanraa Media were also down by over 10 per cent.

Sources said that the mid-cap crash could have been triggered by huge sell orders placed by certain connected entities and the matter was being probed.

The BSE Midcap and Small-cap indices were down 1.33 per cent each, although the benchmark Sensex was almost flat with a marginal decline of 0.09 per cent at 19,300.45 points.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Signalling good times, current account deficit is likely to grow from here on

    The current account deficit (CAD) numbers for April-June quarter declined sharply to 1.7 per cent of GDP.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Disruptive innovation in education

The past two weeks had a fair share of interesting ...

Rajgopal Nidamboor

Regain the spirit of focused power

For aeons, the human race has been experimenting with a ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture