Unitech Crashes 16% amid Midcap, Smallcap Selloff

Midcap and smallcap stocks came under sharp selloff on Wednesday. The BSE midcap index traded 2 per cent lower, while the smallcap index traded 2.5 per cent lower.

Realty stocks, in particular, were hammered down. Unitech traded 15 per cent lower as of 2.35 p.m., while Kolte-Patil Developers traded 10 per cent lower. Anant Raj fell 9.5 per cent, while Indiabulls Real Estate declined 9 per cent. Among large cap realty stocks, DLF traded 4 per cent lower.

Unitech fell on reports that the central bureau of investigation (CBI) has started a fresh investigation about the company's involvement in the 2G case. It has been alleged that Gurgaon-based Unitech was used as a front by the Tata group to get 2G spectrum.

Other stocks facing double-digit losses included Engineers India (down 14 per cent), SpiceJet (down 12 per cent) and Jaiprakash Associates (down 10 per cent).

Jaiprakash Associates fell sharply as its losses in the June quarter widened more than estimated. The company reported a net loss of Rs. 80.6 crore on sales of Rs. 2,994 crore.

Meanwhile, reports that the CBI is also in possession of some 'explosive' phone transcripts in the Syndicate Bank bribery scandal also hurt shares. These transcripts reportedly show other PSU banks are involved in the racket.

Syndicate Bank CMD SK Jain is in CBI custody on charges of taking bribes for extending credit limits of Bhushan Steel and Prakash Industries.

Analysts say worst-than-expected numbers by state-run firms such as BHEL have also impacted sentiments. Bharat Heavy Electricals fell about 8 per cent after April-June earnings lagged estimates.

The broader Sensex and Nifty traded flat as of 2.35 p.m.

(With inputs from agencies)