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E-mail ID will not be published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

  • Prabhu Express has trundled into town with a cargo of feel-good promises

    Railway minister Suresh Prabhu, punning on his own name, sought divine intervention more than once while delivering his maiden rail budget last Thursd

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

Taslima Nasreen

The death of a liberal humanist

I first met Avijit Roy about 15 years ago. He ...

Purnendu Ghosh

Context is important in colour choices

Colours reflect power, optimism, warmth, emotion and balance. Colours are ...

Shona Adhikari

Art world celebrates two ‘new’ Cezannes

The focus moves once more to post-impressionist Paul Cezanne, who ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture