Sterlite Tech has kept posting very strong numbers. But in the kind of market we are in, pledging is currently considered to be a very risky parameter in any company esp after the fallout of Zee.
Plus the Anil Agarwal group has not got the best reputation in the markets after their dealings in Sesa Goa and Cairn etc. Using one company’s cash for other company’s expansions or acquisitions and so on.
Besides that, the stock earlier was quoting at valuations which were discounting 2-3 years of forwards earnings. So a correction was warranted and usually these kind of swings dont stop where they should stop at. So I guess it might swing in the direction of pessimism before it normalises.