Midcap Shares Fall Amidst Talk of Share Sales in India
Share values fell for small and midsized companies on rumors that pledged shares of specific companies were being offered for sale. Amongst those share values plummeted was Welspun Corp, losing 20.4% value and Core Education share value falling 62.4%.
The problem stems from the loans received by controlling stakeholders provided by financial institutions using the shares as collateral for the loans. As collateral, these shares of stock would be vulnerable to rumors of liquidation or sales. These midcap shares have been pressured all year because of earnings concerns and speculation as to funding issues which often leads into sales of these pledged shares.
Other shares that lost value were shipbuilder ABG Shipyard Ltd and Aanjaneya Lifecare Ltd both reaching their limit 20% while Core Education and Technologies Ltd fell by an astounding 62%. Another victim was Housing Development and Infrastructure, which fell 31.2% on issues as to its debt repayments.