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E-mail ID will not be published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

  • Child abuse needs to be tackled with the seriousness it deserves

    The Bangalore rape case has again brought into focus an issue we Indians forever shy away from facing up to — child sexual abuse.

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

Varun Dutt

<b>Riskfactor</b>: THE BASE RATE BIAS

Base rate fallacy, also called base rate neglect or base ...

Parvez Imam

Revisiting history can do us all good

We often think that we understand history. We read it ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture