Stock Market Analyst Ashwani Gujral has suggested the investors to sell IFCI stock as there are full chances of a downward trend in this stock.

If the stock fell below Rs 80, it may see more weakness. Presently (at 10:45 am), IFCI stock is hovering near Rs 78, down 21%.

So, the investors should sell IFCI with a stop loss of Rs 108 for a target of Rs 67.

There is also news that IFCI has rejected the bid put in by Sterlite-Morgan Stanley as both the parties failed to strike agreements over the price and management control.

According to sources, the Sterlite-Morgan Stanley consortium was offered management control at Rs 145 a share, which it did not accept. IFCI quoted Rs 111 a share with three of the eight board seats. The bidders, however, insisted on five board seats at this price. At this point, the deal was called off.

In an announcement to BSE, IFCI said that the `conditional offer` is not accepted and therefore the bid has been rejected.

It is learnt that IFCI will launch a fresh exercise to get a strategic partner. LIC, IFCI’s biggest shareholder with 8%, may turn out to be a surprise entrant. 

From the look of it, it looks that IFCI was gauged the possible complexities and, therefore, was concurrently in discussion with IFC and ADB for a possible stake sale. IFC may take around 10% in the company.