The market is disappointed with the hawkish stance of the RBI Governor and stocks of the Jaypee group have more than a disappointed – the markets have downright beaten them down to pulp.

A highly leveraged group, the biggest loser in the group is Jaypee Infratech which hit a new low today at Rs.12.65 and remains around the same levels currently.

The entire Jaypee group consolidated debt stands presently at Rs.65,000 crore and news is that some of its subsidiaries have not been able to service the interest payment dues. Jaypee Infra and Jaypee Power have fallen into account-1 category for banks, which means they have not been able to service debt for sixty days now, say sources. The banks therefore are working on a corrective action plan to prevent these accounts from becoming an NPA. Jaypee Infra debt is around Rs.13,000 crore. Now with the possibility of no interest rate cut this year, the company will have to continue paying a higher rate, already when it is unable to do so. Sale of non-core assets is the only way out and we could see many of these being put on the block in the coming days.