Investors became poor by Rs 4.4 lakh crore in four days of trading
The infamous loan scam, which involved the top executives of finance companies, has affected the market.
It is reported in Business Standard that due to the impact of the Central Bureau of Investigation (CBI) initiated raids on senior executives of banks and housing finance companies to unearth the alleged bribes-for-loans scam, the equity investors, including promoters, have become poorer by Rs 4.4 lakh crore in just four trading days.
Reliance Communications, MTNL and NHPC were among the 85 stocks that hit all-time lows on the Bombay Stock Exchange (BSE).
As many as 500 stocks have touched a 52-week low in the past four days.
BSE mid-cap and small-cap indices fell over six per cent, compared to the four per cent fall in the benchmark index, the sensex, on fears that foreign institutional investors (FII) might exit the scam-hit companies.
Real estate and infrastructure stocks were hit the most on concern that property prices may slump as the scam affects bank funding for the sector. The sectors like- oil and gas, metal, consumer durables, power, bankex and the capital goods index, FMCG, auto, healthcare and technology were also affected.
The market seems to have over-reacted, says Motilal Oswal, chairman and managing director of Motilal Oswal Securities. He said the significant correction in the past couple of weeks had provided opportunities for value buying. The bottom-fishing, however, should not be done randomly, he added.
