Benchmark indices may have been drifting lower over the last couple of weeks, but the slide in second line shares has been much sharper. Brokers attribute the sell-off to a combination of fundamental and technical factors. In some case, the stocks have crashed to unwinding of positions by operators facing margin calls. But in most cases, third quarter earnings have been disappointing, prompting investors to book profits for the time being.
Unitech: Down 19% Shares of the Delhi-based realty firm took a beating following a Network 18 expose on the CBI prosecutor colluding with the 2G scam accused and Unitech boss Sanjay Chandra to weaken the trial proceedings.
DB Realty: Down 39% Shares of the Mumbai-based realtor were among the biggest losers in the mid-cap space on renewed concerns relating the 2G scam trial, in which the company’s key officials are involved.
Opto Circuits: Down 30% Rising debt in the books of the company and working capital crunch is pressuring the company’s margins, leading to concerns about the company’s profitability
Financial Technologies: Down 19% MCX: Down 15% Many investors had recently built positions in these two stocks, betting that the equity trading platform on MCX-SX (part of the same group as Financial Technologies and MCX) would get off to a flying start. But equity traded turnover in the first few days have been way short of market expectations
Bombay Dyeing: Down 19% The stock got hammered after the Maharashtra government informed the Bombay High Court that the textiles major had obtained approval for using a mill land in central Mumbai for commercial development "illegally and unlawfully" with the connivance of a government officer not vested with the authority.
Jain Irrigation: Down 18% Heavy interest cost coupled with a dramatic fall in EBIT margins from 26% to 16% in the December quarter dampened investor sentiment for the stock.
HDIL: Down 18% Sale of shares by promoter Sarang Wadhawan last month sparked rumours about the financial health of the company. And while the company has denied the talk, market does not appear to be convinced.
UCO Bank: Down 17% UCO Bank's third quarter net profit dropped by 69 percent, Y-o-Y to Rs 102 crore, dented by higher provisions. The provisions against bad loans increased nearly 22 percent to Rs 727.6 crore.
Manappuram Finance: Down 16% Gold loan major Manappuram Finance Q3 net profit halved to Rs 84.4 crore from Rs 161.4 crore a year ago. Net interest income also dropped more than 30%, Q-o-Q.
Jaypee Infratech: Down 15% Jaiprakash Associates the parent company deferred its offer for sale in subsidiary Jaypee Infratech, The sale was intended to meet the Sebi rule on minimum public shareholding.
Jubilant Foodworks: Down 11% The company’s third quarter numbers showed moderation in same store growth, a key measure of revenue growth of retail store chains. This is leading many investors to wonder if the stock can sustain its high valuations in the face of slower revenue growth.