Experts blame this on opportunistic fund raising by many companies. "Last financial year, two kinds of companies raised capital - those that were highly indebted and needed capital to sustain operations and those with a good track record, which used the rally to raise capital to fund growth. The first group disappointed investors, while latter offered a win-win to all," says Nitin Jain, head (capital markets), Edelweiss Financial Services.
Infrastructure developers such as Jaiprakash Associates, GMR Infra, KSK Power Ventures, Jyoti Structures and Supreme Infra fell in the first category. They took advantage of the market euphoria about infrastructure growth, following the National Democratic Alliance government coming to power at the Centre in May last year. But the euphoria gave way to losses when growth and earnings growth fell short of expectations. The stock prices fell sharply, as investors moved to quality stocks.