MARKET WRAP: Sensex ends 280 pts lower after a 1500-pt fall; DHFL tanks 42%

In the broader markets, the S&P BSE SmallCap index fell 3 per cent to 15,763 levels, while the S&P BSE MidCap index lost 1.7 per cent to end at 15,596 levels.

4:17 PM

MARKET COMMENT Mustafa Nadeem, CEO, Epic Research

Nifty and Sensex were down due to widespread selling that was seen in the Financial services sector as credit risk emerged post-ILFS firesale and concern over its interest repayment. Yes bank added fuel as RBI trimmed the CEO's term while pointing to its loan book quality and NPA discrepancies. 

We previously mentioned as well the importance of 11550 being not breached and for Nifty to reclaim its bullish trend it was very much necessary and below that we continue to maintain sell on advances as a strategy. That level is now placed at 11300 and we expect Nifty to continue its downtrend for lower targets of 10600 - 10700

4:13 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

Nifty witnessed violent swings and ended half a percent lower in the end. The beginning was upbeat, tracking firm global cues but the rumours of debt crisis in NBFC sector triggered panic selling across the board, especially in banking and housing finance stocks. Though the benchmark index managed to recoup losses significantly in the latter half, situation remained bleak on broader front.

 

We usually see such volatile moves prior to the market bottom or top but it's too early to confirm the same. We believe the coming week would begin in some clarity. Traders should restrict leveraged positions in the meanwhile and prefer only hedged trades. Investors, on the other hand, can start accumulating fundamentally sound counters on dips with medium to long term view

3:44 PM

YES Bank drags Nifty Private Bank index

3:41 PM

Nifty Realty index fell almost 4%; top losers

3:40 PM

Top losers in the housing finance pack

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
DEWAN HSG. FIN.	345.05	610.55	-265.50	-43.49	111499354
RELIANCE HOME	53.40	61.05	-7.65	-12.53	2312102
REPCO HOME FIN	465.40	510.25	-44.85	-8.79	810144
INDIABULLS HOUS.	1065.25	1159.25	-94.00	-8.11	12906014
CAN FIN HOMES	293.15	308.85	-15.70	-5.08	1985366
LIC HOUSING FIN.	441.00	461.55	-20.55	-4.45	6645915

3:38 PM

Top sectoral trend

3:37 PM

Top Sensex gainers and losers

3:36 PM

Markets at close

The S&P BSE Sensex ended the day at 36,842, down 280 points while the broader Nifty50 index settled the day at 11,143 down 91 points

3:15 PM

Gold rises on firm global cues, jewellers' buying

Gold prices hardened by Rs 50 to Rs 31,700 per 10 gram at the bullion market Friday in line with a firming trend overseas amid increased buying by local jewellers. However, silver shed Rs 20 to Rs 38,080 per kg on lack of buying support from consuming industries. READ MORE

2:59 PM

NBFCs crash: Here's why DHFL tanked over 60% in trade today

Shares of non-bank finance companies (NBFCs) took a massive beating on Friday, with DHFL amd Indiabulls Housing Finance tumbling around 60 per cent and 30 per cent respectively in intraday trade. DHFL lost Rs 100 billion in the m-cap during the day. However, the stocks recovered partially after the management of both companies allayed investor concerns. READ MORE

2:52 PM

Donald Trump says Opec 'must get prices down now' as crude trades near $80

US President Donald Trump resumed his criticism of Opec, saying on Twitter that the cartel "must get prices down now!"

 

Trump's fresh intervention in the oil market comes before a meeting of ministers from the Organization of Petroleum Exporting Countries and its allies in Algeria on Sunday. His complaint follows signals from Saudi Arabia that it was content to see prices climb above $80 a barrel. That's been a red line for the White House in the past, provoking the president to direct his first social-media barb against the cartel since July 4. READ MORE

2:42 PM

NEWS ALERT London Stock Exchange and NSE sign MoU to cooperate on Masala bonds, according to TV reports

2:34 PM

RBI starts buying bonds through OMOs to stem shortage in liquidity

The Reserve Bank of India (RBI) has started buying bonds through open market operations (OMOs), sensing that liquidity in the banking system dried up substantially this week owing to advance tax outflow and should be in deficit mode in the coming days. On Wednesday, it bought bonds worth Rs 100 billion.

 

Any such move adds durable liquidity in the system, as distinct from short-term funds banks borrow from the central bank. READ MORE

2:15 PM

IL&FS mess shows why debt fund investors should watch out for credit risk

Besides duration, credit is the other key risk that investors bear when they invest in debt funds. In the past, too, debt funds have suffered due to payment defaults or credit downgrades in the papers of Amtek Auto, Ballarpur Industries, Jindal Steel and Power, and so on.

 

The recent multiple-notch downgrade of the papers of IL&FS (from AAA on August 6 to D by September 17) and its group entities by ICRA should jolt investors into paying greater attention to credit risk in debt fund portfolios. READ MORE

2:02 PM

NBFCs in a free fall; DHFL bleeds 60%, loses Rs 10,000 crore in m-cap

Shares of financial services companies took a massive beating on Friday with DHFL bleeding as much as 60 per cent in the intraday trade. The company lost around Rs 10,000 crore in the m-cap during the day.

 

According to the analysts, the IL&FS crisis was the main reason behind the selloff. That apart, a rise in bond yields too weighed on the sentiment. READ MORE

1:50 PM

Top losers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
DEWAN HSG. FIN.	388.25	-222.35	-36.42	7512285
YES BANK	235.35	-83.15	-26.11	16945506
CENTRAL BANK	53.35	-13.30	-19.95	132450
INFIBEAM AVENUES	195.00	-39.80	-16.95	1904286
SWAN ENERGY	125.00	-21.15	-14.47	107902

1:36 PM

DHFL drags the S&P BSE SmallCap index, which is currently trading over 500 points lower at 15,718 levels

1:27 PM

India VIX

NSE's Volatility Index (India VIX), or the fear gauge, rose by over 11% 

1:20 PM

Financial stocks decline, Nifty Fin Service slips nearly 1.5%

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
INDIABULLS HOUS.	810.05	1159.25	-349.20	-30.12
M & M FIN. SERV.	368.40	433.40	-65.00	-15.00
SHRIRAM TRANS.	1013.25	1192.05	-178.80	-15.00
BAJAJ FIN.	2235.00	2499.55	-264.55	-10.58
EDELWEISS.FIN.	219.45	244.05	-24.60	-10.08

1:16 PM

Sectoral trend

1:11 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,611.84	-509.38	-1.37
S&P BSE SENSEX 50	11,395.26	-354.60	-3.02
S&P BSE SENSEX Next 50	31,273.10	-2508.09	-7.42
S&P BSE 100	11,099.90	-420.12	-3.65
S&P BSE Bharat 22 Index	3,508.02	-55.42	-1.56

1:09 PM

BSE Midcap index down nearly 1000 pts; top losers in the pack

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
CENTRAL BANK	53.35	66.65	-13.30	-19.95	63553
LIC HOUSING FIN.	399.45	461.50	-62.05	-13.45	149027
L&T FIN.HOLDINGS	126.85	146.10	-19.25	-13.18	1508485
GRUH FINANCE	287.25	330.60	-43.35	-13.11	101530
PIRAMAL ENTERP.	2527.80	2888.40	-360.60	-12.48	75603
M & M FIN. SERV.	389.95	433.20	-43.25	-9.98	225973
SHRIRAM TRANS.	1078.00	1190.45	-112.45	-9.45	43817

1:06 PM

Other housing finance companies are also under pressure

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
DEWAN HSG. FIN.	354.70	610.55	-255.85	-41.90	24962370
INDIABULLS HOUS.	985.40	1159.25	-173.85	-15.00	2536512
RELIANCE HOME	53.00	61.05	-8.05	-13.19	746272
GRUH FINANCE	297.75	331.50	-33.75	-10.18	224231
REPCO HOME FIN	479.55	510.25	-30.70	-6.02	302744
CAN FIN HOMES	291.80	308.85	-17.05	-5.52	481557

1:01 PM

DHFL cracks 50% on NSE amid high volumes

1:00 PM

IL&FS mess shows why debt fund investors should watch out for credit risk

 

Besides duration, credit is the other key risk that investors bear when they invest in debt funds. In the past, too, debt funds have suffered due to payment defaults or credit downgrades in the papers of Amtek Auto, Ballarpur Industries, Jindal Steel and Power, and so on.

 

The recent multiple-notch downgrade of the papers of IL&FS (from AAA on August 6 to D by September 17) and its group entities by ICRA should jolt investors into paying greater attention to credit risk in debt fund portfolios. READ MORE

12:45 PM

United Spirits falls over 6% after Diageo issues profit warning

 

Shares of liquor company United Spirits slipped as much as 6.34 per cent in the intraday trade on Friday after the parent company Diageo warned that its full-year profits will be dented by the recent sell-off in emerging market currencies.

 

Diageo, which has operations across 180 countries, said it expected currency effects to knock 175 million pounds off net sales, compared to a previous estimate of 70 million pounds, which would wipe 45 million pounds off its full-year profit, up from an earlier estimate of 10 million pounds, said a Reuters report. READ MORE

12:30 PM

Sebi norms for corporate bonds could boost issuances by Rs 500 bn: Crisil

 

Market regulator Securities and Exchange Board of India’s (Sebi’s) new framework to push large listed companies towards the bond market could result in incremental corporate bond issuances worth Rs 500 billion over the next five years, says Crisil Rating.

 

Under the new framework large corporates have to raise a fourth of their incremental borrowings for a year through corporate bonds. A large corporate is defined as one having outstanding borrowing of Rs 1 billion or more, a credit rating of ‘AA’ or higher and an intention to mobilise long-term funds. READ MORE

12:15 PM

Sensex gainers and losers in noon trade

12:00 PM

Markets at noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,321.83	+200.61	+0.54
S&P BSE SENSEX 50	11,800.26	+50.40	+0.43
S&P BSE SENSEX Next 50	33,591.72	-189.47	-0.56
S&P BSE 100	11,552.19	+32.17	+0.28
S&P BSE Bharat 22 Index	3,609.39	+45.95	+1.29

11:45 AM

With economies still recovering, what have we learnt from financial crisis?

 

A little more than a decade on from the collapse of Lehman Brothers, the largest bankruptcy in history, many of the world’s advanced economies are only now beginning to recover fully.

 

It is hard to describe how scary the two months around the Lehman bankruptcy were. Two anecdotes convey some of that fear, however.

 

The first was when I spoke to an economics official in the Obama administration who said: “Go get cash and bottled water. Automatic teller machines might not be working two days from now.” READ MORE