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.
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The S&P BSE Sensex partially recovered after crashing 1,496 points in from the day's high to settle 280 points lower at 36,842 on Friday. The index had hit an intra-day high of 37,489.24 before crashing to the day's low of 35,993.64.
The Nifty 50 index, on the other hand, hit a low of 10,866 levels, but settled 91 points lower at 11,143.
The decline came on the back of a sharp fall in NBFC stocks. DHFL skidded over 50% in intraday trade on fears of a liquidity crisis. The management, however, assuaged investor concerns and said the company has not defaulted on any repayments. The stock settled 42 per cent lower at Rs 352 on the BSE. According to the analysts, the IL&FS crisis was the main reason behind the selloff. That apart, a rise in bond yields also weighed on the sentiment. READ MORE HERE
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.
The Nifty 50 index, on the other hand, hit a low of 10,866 levels, but settled 91 points lower at 11,143.
The decline came on the back of a sharp fall in NBFC stocks. DHFL skidded over 50% in intraday trade on fears of a liquidity crisis. The management, however, assuaged investor concerns and said the company has not defaulted on any repayments. The stock settled 42 per cent lower at Rs 352 on the BSE. According to the analysts, the IL&FS crisis was the main reason behind the selloff. That apart, a rise in bond yields also weighed on the sentiment. READ MORE HERE
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.
YES Bank slips 30%
YES Bank fell 34 per cent in intra-day trade after the Reserve Bank of India (RBI) trimmed Rana Kapoor's tenure as its MD & CEO. It, however, recovered partially to close 30 per cent lower at Rs 225 levels. The private sector lender said on Wednesday that the RBI had allowed Kapoor to continue only till January 31. According to sources, the RBI has cited corporate governance and regulatory issues for not extending Kapoor’s term. Further, the lender has been directed to search for a successor. CLICK HERE FOR THE STOCK STRATEGY
YES Bank fell 34 per cent in intra-day trade after the Reserve Bank of India (RBI) trimmed Rana Kapoor's tenure as its MD & CEO. It, however, recovered partially to close 30 per cent lower at Rs 225 levels. The private sector lender said on Wednesday that the RBI had allowed Kapoor to continue only till January 31. According to sources, the RBI has cited corporate governance and regulatory issues for not extending Kapoor’s term. Further, the lender has been directed to search for a successor. CLICK HERE FOR THE STOCK STRATEGY
Global Markets
A rally in Chinese markets helped lift the MSCI's broadest index of Asia-Pacific shares outside Japan 1.15 per cent, buoyed in part by expectations that Beijing will pump more stimulus into its economy to whether the trade war. The MSCI index has rebounded 4.6 per cent from a 14-month low on Sept. 12.
The CSI 300 index of Shanghai and Shenzen shares, which slumped to a two-year low last week, rose 2.4 per cent, on course for its largest weekly gain in more than two years. Japan's Nikkei rose 0.8 per cent, hitting an eight-month high.
(with wire inputs)
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
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
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
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First Published: Sep 21 2018 | 8:15 AM IST
