Infibeam loses Rs 9,200 crore in m-cap in just 1 day: should you buy, sell or hold?

 The reasons for the collapse could be attributed to the rumors which spread on WhatsApp may have triggered the slide. However, the management of the company clarified in a note that the fundamentals of the company remain intact and there is no information which is pending from the company's side.

Equirus Capital in a separate note said that they have only released a conference note and have not circulated any message on instant messaging platforms.

Infibeam Avenues Ltd, the operator of e-commerce firm Infibeam and the parent of payment gateway company CCAvenue, saw more than Rs 9,000 crore getting wiped out from its market capitalization in a single day. The market capitalization fell from Rs 13,105 crore recorded on Thursday to Rs 3,900 crore on Friday.

Most experts suggest investors stay away from the counter as the recent price action suggests that big hands from the stock might have exited. If we look at the delivery data on the BSE it stood at 28,46,432, almost 4.8 times higher than from last Friday's slide (September 21) when the stock fell over 20 percent and recovered in the very next session.

Deliverable quantity data needs to be analyzed along with the share price. When the share price of the stock is moving down with a higher percent of deliverable quantity to traded quantity, it indicates bearishness in the share as most sellers are expecting the share price to go down.

“The deliverable quantity of 28 lakh is very high and almost 4.8 times we saw on September 21 when the stock fell by over 21%. The data suggest that big hands might have exited from the stock and the recovery will take a very long time,” AK Prabhakar, Head of Research at IDBI Capital told Moneycontrol.

“If we look at the stocks which fell on Friday are mostly which have low quality. Investors should analyse stock in their portfolio and if 10,800 breaks mega-correction will follow. The stock appears expensive, and investors could look at exiting from the stock,” he said.

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