Jaiprakash Associates plunges 18%, DLF tanks 9%

MUMBAI: Shares of two Delhi based real estate majors?Jaiprakash Associates and DLF?went on a free fall in Thursday's weak market that saw the sensex close lower after nine consecutive sessions of gains, in which the index touched new peaks. The slide in the broader market, however, is a seen as a sign of consolidation which is healthy for long-term sustenance of the bull rally, market players said.
Shares of Jaiprakash Associates crashed 17.6% to Rs 37.7 on news that the company's promoters were reducing their stakes. The company told the exchanges that one of its promoters had cut stake in the company by nearly 1.5 percentage points to 28.3%. The shares of DLF, one of the leading real estate players in the country, lost 8.6% to Rs 167 after the Punjab & Haryana high court cancelled one of its land deals through which the company was set to acquire about 350 acres.
The day's session also witnessed selling by domestic institutions and local investors, which brought the sensex down by 54 points to 27,086, although FIIs net pumped in nearly Rs 1,700 crore. Among the frontline stocks, Reliance Industries closed 0.7% lower at Rs 1,024. The slide in the stock came despite disclosures that showed that FII holding in the company was at 20%, a seven-year high, while retail holding had fallen below the double-digit mark.
The day also witnessed a large chunk of Idea Cellular shares being sold by Providence, one of its oldest institutional shareholders. The US-based buyout firm sold8.5 crore shares at Rs 166.35 per share.