ON MONDAY, a day after Aditya Birla Group's Hindalco acquired US-listed Novelis for $5.9 billion, stocks led by the aluminium giant plunged in Mumbai, affected largely by concerns over the debt incurred in such deals and its short-term implications on profits.
The markets went into a tailspin, with the 30-share Sensex losing 348 points, its biggest single-day fall this year.
Hindalco's share ended down Rs 23, or 13.7 per cent, to close at Rs 149.50, the lowest in eight months. Last Friday, wind energy giant Suzlon made an unsolicited $1.38 billion bid for German wind power firm Repower. When trading opened on Monday, the Suzlon scrip lost 13 per cent too.