Information asymmetry and the ability to analyse a stock becomes clear if the response of retail and institutional investors to Jet Airways (India) Ltd’s unravelling financial woes is tracked during the last financial year.
Data from BSE showed that institutional investors—mutual funds and foreign portfolio investors (FPIs)—were steadily losing confidence in the beleaguered airline since December 2017. FPIs and fund houses cut their stakes to 3.58% and 1.47%, respectively as of end-March, from 9.65% and 4.96% respectively in 31 March 2018.
Meanwhile, retail investors, who traded in lot sizes of less than ₹1 lakh, raised their stakes every quarter.
