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Indian midcap shares slump on talk of sale of pledged shares

Source : REUTERS
Last Updated: Mon, Feb 25, 2013 07:18 hrs
BSE Sensex closes up 472 points

Indian mid- and small-sized stocks slumped on Monday, with welded steel pipe maker Welspun Corp Ltd falling as much as 28 percent, on speculation that the pledged shares of these companies were 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.

Welspun was down 25 percent as of 0649 GMT. Shipbuilder ABG Shipyard Ltd and Aanjaneya Lifecare Ltd fell by their daily limit of 20 percent.


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