Anti corruption activist turned politician Arvind Kejriwal has emerged as the 'new theme' for stock market traders. They are going short on shares of companies, which Kejriwal has, or is, likely to target.
After DLF, the share price of Indiabulls Group firms and GMR Infrastructure came under selling pressure today. Kejwiral had hinted yesterday he was preparing a list of nexus between politicians and these companies. The share price of Indiabulls group firms fell between 4-10% and GMR Infrastructure crashed by 9.2% at Rs 23.2. DLF too continued its slide and fell 5.4% to close at Rs 212 today. Kejriwal on Tuesday said that there was information that a lot of people close to politicians had invested in BPTP, Indiabulls and GMR group.
“Traders are closely following Kejriwal. He has built a reputation in stock market after his allegations on Robert Vadra and DLF. The company and Vadra till now have not been able to counter these allegations effectively,” said Kishor Ostwal managing director of Mumbai based CNI Global Research.
Ostwal, however, is of the view that the sharp fall in share prices of these companies was a knee jerk reaction and they would re-bound when markets improve. The broader index Sensex of the Bombay Stock Exchange and Nifty of the National Stock Exchange fell 1.21 and 0.92% respectively today.
Investment Advisor S P Tulsian said, corporate governance issues have been a theme for stock market traders for the past many months now. “Kejriwal's allegation has revived concerns on these companies. So traders now fear of litigation against these companies,” said Tulsian.
Stock market players have given thumbs down to all those companies where Canadian research firm Veritas in the past raised red flags. They include, DLF, Indiabulls, Kingfisher Airlines and Reliance Communications.
