Stocks from the Anil Dhirubhai Ambani Group continued to sink in trade with little or no respite for these stocks.
Reliance Infrastructure fell a huge 7 per cent dropping to a new 52-week low of Rs 55, while Reliance Capital plunged a huge 5 per cent in trade. RCOM and Reliance Power were the other stocks that gained ground.
The Anil Ambani-led Reliance Infrastructure reported a net loss of Rs 3,301 crore in the fourth quarter of 2018-19, its biggest ever, as the company undertook impairment and write-offs of over Rs 8,500 crore.
The auditors have raised questions about the company's ability to continue in business. RInfra set-off exceptional losses against Rs 6,616 crore from general reserves to reduce the net impact, without which the losses would have been higher.
Worries over mounting debt at the group continue to weigh on sentiments. However, the group has been trying to sell assets to raise money and pay-off debts. Arbitration ward receipts might also benefit companies like Reliance Infra.
However, investors have been hammering stocks where there are worries, auditor resignations or mounting debt. It is likely that we might continue to see pressure on stocks of the ADAG companies, until issues remain resolved.