The stock of Greaves Cotton plummeted by more than 18 per cent on Tuesday on the BSE on rumours that Piaggio is likely to set up a plant in India. Given that 30-35 per cent of the company's revenue comes from Piaggio, this news is expected to dampen its future prospects.
Greaves Cotton manufactures diesel engines for Piaggio. Dealers also said that a leading domestic fund, which holds more than six per cent equity in the company, had turned seller on this counter. The stock closed at Rs 322.55, down 18.23 per cent