Evan's decision to short-sell a significant volume of shares triggered an unprecedented decline in the stock prices of the companies associated with the Rajput family and their affiliates.
Prominent stocks that had previously shown resilience and growth suddenly began to plummet, triggering panic among retail investors.
For instance, the shares of Rajput Enterprises fell sharply, dropping nearly 15% within an hour. Other companies that were associated with or partnering with the Rajputs also experienced sharp declines, with stock prices dropping by similar margins.
As a result, the mutual funds that had heavily invested in these companies faced immediate repercussions, with analysts predicting a massive wave of redemptions, and anxious investors rushing to minimize losses. Caught off guard, the fund managers scrambled to rebalance portfolios, adding even further selling pressure to the market.
