None of the companies saw their promoters pledging more than 75 percent of their holdings in the March quarter, similar to the previous two quarters.
Edelweiss Research, which tracks 4,062 companies, found that 16 percent, or 642 promoters, pledged a part of their holdings in the July-September quarter.
Adani Ports resumed its annual guidance after a recovery in business volumes. While the company expects to clock modest growth in the current fiscal, stock pledges by promoters rose significantly
A high pledge is not considered a good sign by the investors as a downturn in the market price can lead to invocation and change in management.
Usually, a fall in promoter pledge is considered as a positive sign, but it has be read with the macro-economic situation
A positive outlook for rural recovery and the likely reduction in promoter pledge are some positives for Emami
Rupee has fallen to its lowest level this year against the dollar on the back of weakness in domestic equity markets and new multi-year lows made by the Chinese Yuan
Future Enterprises, Bajaj Corp, Fortis Healthcare and Sterlite Technologies have seen a sharp jump in promoter pledging activity as compared to the previous quarter, Edelweiss Securities wrote in a report.
Promoters pledge their own stake in the company to raise money. It connotes a lot to smart investors. One should check the promoter pledge among other factors before initiating a trade in a stock.