The scam-polluted environment spells doom for stocks of companies with suspected links to political figures and parties

For instance, HCC’s stock has plunged 38% from its level earlier in the month. It turns out that the controversial Money Matters Financial Services is associated with Lavasa Corporation-a subsidiary of HCC-for whom Money Matters acted as an agent to sell its properties. Lavasa was also hauled up by the Environment Ministry last week, for some violations, and this is keeping investors on tenterhooks. Promoter Ajit Gulabchand is close to agriculture minister Sharad Pawar.

IRB Infrastructure’s chairman and managing director Virendra D Mhaiskar is also known to be close to Sharad Pawar. The IRB stock has hit Rs195 from Rs270 in a matter of weeks. Jaypee Infratech and HDIL are also companies which were associated with Money Matters Financial Services, which arranged loans for them early this year. Jaypee is seen to have considerable influence due to its affiliation with Uttar Pradesh chief minister Mayawati. The Jaypee has plunged 22% since 12 November 2010. HDIL’s managing director Sarang Wadhawan is seen to have connections with leaders in the both the Congress and the Shiv Sena. The HDIL stock has sunk 32% since 10 November 2010.

On a different note, IVRCL and Nagarjuna Constructions seem to have suffered a crisis of confidence post the death of popular leader YS Rajasekhara Reddy in a helicopter crash last year. The stocks of IVRCL and Nagarjuna have been quite weak throughout 2010. In November they tanked 22% and 20% respectively. For more visit: Moneylife.in

Similar Posts:

• YSR Crash Conspiracy Story – Was YSR Reddy murdered?
• Stocks sink on rain scare
• Stocks of 400 companies rise 100 per cent
• Top nine companies lose Rs 35,893 cr in m-cap; HDFC Bank drags
• Poll-bound Maya sweetens deal for sugarcane farmers