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

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

SI Reporter  |  Mumbai 

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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

First Published: Wed, July 31 2019. 11:03 IST
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