Mumbai: Apart from the general weakness in the financial markets at present, sharp fall in some prominent stocks have caught the retail investors by surprise. Traders have resorted to panic selling, often at rates even less than a rupee, some over reports of allegations of fraud and others over poor corporate governance or fast dwindling financials. Such companies even saw the Foreign Investors lowering there bets on them over a period of time.
One such stock, Cox & King, turned out to be the biggest wealth destroyers in the past year. The travel company stocks saw an erosion of over 98 per cent of its share value in barely an year, amid rating downgrades and a series of defaults on payments towards maturity of Commercial Papers (CPs).
CARE Ratings downgraded ratings of the company, stating that the rating strengths are tempered by exposure of the company’s travel business to macro-economic factors prevailing in the markets to which it caters and the fragmented nature of the domestic travel industry. (IANS)