Bharti Airtel shares fell 6 percent on Thursday to close at Rs.550.It was the steepest fall for the stock in four months. So what’s the buzz ? The firm’s chief executive, Manoj Kohli, sold his holding in the company.
He sold 123,000 shares through open market transactions on March 6 and 9, later said he had done so for personal reasons . Kohli said he is still holding 180,000 options and would continue as CEO and joint managing director.
Kohli would have got about $1.5 million for the shares he sold.The market is worried why all of a sudden the CEO had to sell his holding.Investors were jittery about such insider stake sales after recent corporate scandals, including the alleged fraud by Satyam Computer. Also, the recent TRAI announcement to cut interconnection charges is negative for them.
Technically the stock has gone down on huge volumes of more than 1cr shares on NSE and it is a important factor to watch out going forward.