JSPL down on CAG report: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Head-Institutional Clients Group, Asit C. Mehta Investment Intermediates Ltd, gives his views on stocks. Excerpts:

ET Now: JSPL has been particularly hit by the CAG report on coal block allocation.

Prakash Diwan: I guess there is no particular reason for this stock to be the single down but the vulnerability of some of the stocks that we have seen in the first half of March is very distinct.

The moment you have some sort of a negative flow, the shorting happens in these stocks wholeheartedly and there is no looking back on that. Today the market is so uncertain and so indecisive on levels that it is difficult for anybody to even start looking at value buying.

Some of the stocks have unreasonably come down and the fundamentals wouldn't back it up. So JSPL is a classic example of being too vulnerable and bad news triggers comes through and people just come in and make merry while shorting it completely till they can.