If a promoters of company sell the stake in company for a discount of 4%, why that stock falls?

General
2

Think about it, the promoter himself is selling the stock at a discount, which means he is not confident about the business prospects of his own company. So why should others buy? Hence the stock naturally declines.

2 Likes
3

Well the promoters could have thought after bonus issue, it is a good time to cut the holding, and get the maximum profit. Who knows US markets, chances are likely they gonna hike rates in early 2015, Europe is in doldrums, (where maximum revenues comes from) except Germany.

Conclusion: Promoters ain't so greedy.They had sufficiently filled the appetite by taking profit.

Thanks 

4

Promoters selling their stock is not a good sign at all. More than a good reason for the stock to fall

5

It is similar to what would happen if Aamir Khan declines publicly to promote his own film ‘PK’. Yaise gutur gutur kya dekh rahe ho, Sell button press maro!, just kidding…

6

Hi Karthik,
This is one side of the story however its also told that the response for this deal was very high from all categories of investors.
Others wont buy it from promotors till they do their research well, now whose call should we trust? The seller’s or the buyer’s?
Thanks

7

You should trust no one but your own judgement, if you think Infy will do very well over the next few years, be a buyer else look for another opportunity!.