InvestorQ : Why Indiabulls housing finance, Suzlon Energy among top losers on BSE?
Pranit Sharma made post

Why Indiabulls housing finance, Suzlon Energy among top losers on BSE?

Answer
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sara Kunju answered.
1 year ago


There have been various reasons for these stocks coming down. If you look at the trend of these two stocks they have been correcting for quite some time. Indiabulls Housing has been correcting due to the weakness in the realty sector, the monetary and liquidity tightness in the money market and a series of downgrades that happened on the stock by rating agencies. The industry-level issues also rubbed off on Indiabulls including the crisis that Dewan Housing is currently facing due to a major asset-liability mismatch.

But above all, the reason for the recent correction in India bulls was the fairly large margin funding positions that were built upon the counter. SEBI had announced that August 31st would be the last date for unwinding such partly paid positions and that led to frantic selling in the last few days. Among the major margin funding stocks, Yes Bank and Indiabulls were among the major ones. The total quantum of such partly paid selling was estimated at Rs.3000 crore. Of course, the deadline has now been extended to September 30th but the pressure could remain on Indiabulls.

Suzlon had a major default last month and has been struggling to generate operating profits. The company has been trying for long to defray its debt and the recent rounds of payment defaults indicate that there is also a liquidity crisis in the company. That is what is leading the company lower.


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Parth pala answered.
12 months ago


SEBI had announced that August 31st would be the last date for unwinding such partly paid positions and that led to frantic selling in the last few days. Among the major margin funding stocks, Yes Bank and Indiabulls were among the major ones