The Hindu Business Line : Sell pressure on cos based in Hyderabad

Chennai, Jan. 7 Several Hyderabad-based companies witnessed steep fall in share prices following the startling revelations by the Chairman of Satyam Computer.

IVRCL Infrastructure plummeted 27 per cent, Lanco Infratech drooped 25.35 per cent, Nagarjuna Construction Company slumped 21.88 per cent, GVK Power declined 19.78 per cent, IVR Prime crashed 15.9 per cent and Nagarjuna Fertilizers tumbled 13.81 per cent.

Stocks such as Dr. Reddy’s Lab, Tanla Solutions, Taj GVK, Deccan Chronicle, Max Laboratories, FourSoft, ICSA, Infotech Enterprises and Prajay Engineering also fell in the region of 5-20 per cent.

However, the stock of GMR Infrastructure, which is also a Hyderabad-based company, gained 5 per cent.

According to brokers, it is not only Hyderabad-based companies that faced the traders’ wrath, counters that saw heightened speculative interest in recent times – such as JP Associates, Suzlon, HDIL, Unitech and Indiabull Real Estate – also witnessed heavy selling pressure.

According to a Mumbai-based broker, Wednesday’s reaction was more of sentimental in nature. “As most of these counters gained sharply in the recent rally, they also saw profit-taking,” he added.

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There is a hole in my books, dear investor