Midcap index hits over 2-yr low; RBL Bank, HEG tank more than 30% in July

The Nifty MidCap index hit an over two-year low on the National Stock Exchange (NSE) on Wednesday prompted by a sharp fall in shares of financials, including non-banking finance companies (NBFCs), banks, auto ancillaries and information technology (IT) companies.

At 10:11 am, the Nifty Midcap 100 index was quoting 0.42 per cent lower, as compared to a 0.4 per cent decline in the Nifty 50 index. It hit a low of 15,510 in intra-day trade today, its lowest level since January 31, 2017.

Thus far in the month of July, the midcap index has tanked 11 per cent, against 6 per cent fall in the benchmark index.

RBL Bank, Future Consumer, HEG and Dewan Housing Finance Corporation (DHFL) have seen their market price decline by more than 30 per cent in July. NBCC, Indian Bank, Apollo Tyres, Mindtree, Reliance Capital, Quess Corp, Manappuram Finance, Mahindra & Mahindra Financial Services slipped in the range of 20 per cent to 30 per cent during the month.

Heavy selling of Indian equities by foreign portfolio investors (FPIs) led to a sharp fall in market values of most of the companies. In July, FPIs sold equities worth of about Rs 11,200 crore ($1.6 billion) on account of multiple headwinds, including the super-rich tax announced in Budget 2019-20.

In Corporate developments, the chairman of a well known Coffee company went missing which set the 'cats amongst the pigeons' as banks which had lent to the Company saw a barrage of selling, IIFL Securities said in client note.

Among individual stocks, RBL Bank was the biggest loser, hitting a 52-week low of Rs 382 in intra-day today, on concerns of the bank exposures to certain operating entities of the Coffee Day Group in the logistics, coffee and real estate businesses. The stock has plunged 40 per cent in the past month.

The private sector lender issued a clarification yesterday, saying that the credit facilities that are largely working capital in nature, are secured by primary securities, as well as some collateral of land and marketable securities. "All the loan accounts are standard and performing," it said.

Of the Nifty Midcap 100, a total of 25 stocks from the index, including Oil India, Escorts, TVS Motor Company, Tata Power Company, PNB Housing Finance, Bharat Forge and Balkrishna Industries, were trading at their respective 52-week lows on the NSE.

COMPANY	LATEST	ONE MONTH AGO	LOSS(%)
RBL BANK	400.70	638.65	-37.3
HEG	957.75	1468.55	-34.8
FUTURE CONSUMER	27.55	40.95	-32.7
DEWAN HSG. FIN.	49.10	72.05	-31.9
NBCC	41.40	59.60	-30.5
INDIAN BANK	181.65	259.80	-30.1
QUESS CORP	419.50	578.50	-27.5
RELIANCE CAPITAL	49.30	66.10	-25.4
RELIANCE POWER	3.10	4.15	-25.3
APOLLO TYRES	151.95	200.65	-24.3
MINDTREE	706.40	927.40	-23.8
ENDURANCE TECH.	854.00	1114.40	-23.4
IDBI BANK	27.30	35.50	-23.1
M & M FIN. SERV.	300.05	388.40	-22.8
RELIANCE INFRA.	43.40	55.60	-21.9
MANAPPURAM FIN.	108.70	138.20	-21.4
BANK OF INDIA	71.00	90.15	-21.2
ENGINEERS INDIA	96.10	121.35	-20.8
POWER FIN.CORPN.	106.80	134.20	-20.4
L & T INFOTECH	1486.05	1829.45	-18.8