Rolta India seems to be on a free fall today. The stock is down over 10% currently at Rs.157 levels, with intra day low at Rs.155.20. Volumes have risen almost three times.

The sudden sell-off on the counter started after a USA based FII put out a report, with a sell call on the stock. Glaucus Research put out a very strong sell report , stating that the company is tight on cash flows and is not able to repay its offshore bond holders without refinancing. It is urging its clients and investors to sell Rolta’s bonds, which are due in 2018 and 2019.

Obviously many investors have given a lot of credence to this report, which is why we are seeing this ell off today. That remains the influence of FIIs and brokerage houses – the moment they put out reports, be it buy or sell, the stock price reacts strongly.