Pledged shares: There is speculation that pledged shares in some of these companies are being sold off, dealers said. Controlling stakeholders of Indian companies often receive loans from financial institutions, pledging their shares as collateral, making these stocks vulnerable to any rumours of liquidations.
Lack of buying by foreign or domestic institutional investors at support levels have sent these stocks in a free fall, traders said.
Traders are wary of taking large positions ahead of the Budget.
(With inputs from Reuters)