NDTV Profit

Promoters say no idea why midcap shares crashed


A crash in midcap and small cap stocks sent shares in many firms in a free fall on Monday. Traders were still looking for answers behind the sharp selloff that affected more than a dozen companies.

Some of the companies NDTV Profit spoke to were clueless about the reasons behind the sharp selling in stocks.

"Our business fundamentals remain intact. We don't know the reasons, but think an individual stock holder who held position has sold. The promoters hold 75 per cent stake in the company and none of our stocks are pledged," Kamal Jain, group GFO at Eros said.

Shares in Eros International Media were down 9.5 per cent at Rs 175 on the BSE as of 01.30 p.m. The stock had earlier dropped to as low as Rs 154.70 before staging a sharp recovery.

Mumbai-based realty developer Orbit Corp traded 14 per cent lower at Rs 33.25 after falling to as low as Rs 31.55.

Ram Yadav of Orbit Corp said he is in touch with institutions with which the company's shares are pledged.

"There is no information that these shares have been released in the market and don't see any reason for panic," Mr Yadav told NDTV.

Core Education, ABG Shipyard, Welspun Corp, Opto Circuits and DB Realty were some other stocks that witnessed sharp selloff today.

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