Today(25.07.12), there was a sudden wave of selling that engulfed several mid-cap stocks. Tulip Telcom fell 25.14 per cent to Rs 88.60 with a traded volume of 1.92 crore shares. Era Infra fell 20 per cent to Rs 115. Pradip Overseas, Pipavav Defence and Offshore and Glodyne Technologies each fell 19.99 per cent.
Parsvanath Developers slumped 19.93 per cent to Rs 46.20 and while SRS Ltd shed 16.22 per cent to Rs 36.15. Amar Remedies plummeted 16.87 per cent to Rs 114.85 while Monnet Ispat lost 12.90 per cent to Rs 336.15. Radico Khaitan was down by 11.31 per cent to Rs 101.95.
|Price on BSE||July 26||Intra-day
fall (%) #
|Era Infra Engineering||114.90||-19.99||-19.99|
|*Over previous close; # % change of days low and previous close
Chart Reproduced from Business Standard
The sudden and savage fall took everyone by surprise. While no clear reasons are known, it is suspected that margin calls may be behind the debacle. Of course, the million dollar question is whether one should take advantage of the savage fall in stock prices to tank up on quality stocks.