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Gammon Falls On Metro Mishap

Panicked investors beat the share down by over 17 per cent during the day

On the back of the Delhi Metro mishap involving the collapse of a bridge that the company was building, the shares of engineering giant Gammon India tumbled, indicating investors have panicked about the likely consequences on the company's future growth prospects.

Six people were killed in the accident.

The company was in the midst of a similar controversy last year too, when another bridge that it was building collapsed onto the road below in Hyderabad in September 2007. Also, with the infrastructure-related stocks being numerous, investors may have looked to shift their focus away from Gammon India for a while.

Although shares of the company fell over 17 per cent during the day, they recovered to close the day down by 4.8 per cent on the BSE. The stock opened at Rs 136.50, hit the day’s low of Rs 133, jumped to a high of Rs 177.50 and finally closed at Rs 168.10.

Check: Gammon India Snapshot