Market regulator SEBI's decision to bar four companies, including USD 3 bn worth Welspun Corp, from trading due to their unfair trading practices, dragged their share down, with the latter falling by 27 per cent in the early trade on BSE.
Yesterday, SEBI had barred Murli Industries, Ackruti City, Welspun Gujarat Stahl Rohren Ltd (now Welspun Corp Ltd), Brushman India and their respective promoters from trading on the bourses for allegedly indulging in unfair trading practices.
Reacting to the news, Welspun Corp scrip nosedived by 26.97 per cent to hit an-yearly low of Rs 160 on the Bombay Stock Exchange. Similarly, the real estate firm Ackruti City tumbled by 19.99 per cent to a record low of Rs 307.90, hitting a lower circuit on BSE.
Cement firm Murli Industries saw a steep decline of 19.99 per cent while the paintbrush manufacturer Brushman India counter dropped by 4.96 per cent in the early trade on BSE.
Meanwhile, the broader gauge Sensex recovered from the early bad start today when it had dipped 40 points down on profit booking, and was trading firm at 20,048.10.