New Delhi: Shares of Indiabulls Housing Finance continue to shrink on Wednesday following allegations of siphoning off ₹98,000 crore of public money.
The stock had hit a 52-week low of ₹576.35 on Tuesday after the report and ended the session falling 8%. The company has lost ₹7,000 crore so far.
The company has now moved the Supreme Court alleging that the plea against it alleging misappropriation of ₹98,000 crore public money is "frivolous". The court said it will take a decision on listing of the plea during the day, PTI reported.
The share of the company on Wednesday was trading near four-month low and chart by Reuters suggested more downside in the coming days.
At 11 am, Indiabulls Housing Finance was at ₹6.54% at ₹632.60, lowest since 20 February. The stock has broken below its support price at ₹642.07, the 76.4% Fibonacci projection level of the downtrend from 5 April high to 13 May.
The company has made a wave pattern on the chart made by Reuters which suggests a three wave downtrend. The current wave has the potential to travel up to support at ₹578.8, the 100% projection level. The chart also shows that MACD is negative and below its signal line, seen unfavourable.
Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
The stock was down 21% this year as of the last close.
A plea was filed in the Supreme Court on Monday seeking legal action against IBHFL, its chairman and directors for alleged misappropriation of ₹98,000 crore of public money.
Terming the allegations as "bizarre", IBHFL on Monday said the writ petition filed in the apex court is an attempt to "malign" the company's reputation and create hurdles in its merger with Lakshmi Vilas Bank.
"The total loans on the books of IBHFL is approx ₹90,000 crore. The allegations of siphoning off ₹98,000 crore are bizarre," IBHFL had said in a statement.
(With inputs from Reuters)