Stock market falls as NBFC liquidity fears weigh on investor sentiment

Experts said the liquidity crunch at NBFCs had compounded worries for the market, which is already grappling with the depreciating rupee and higher oil prices

The benchmark indices fell sharply from their day’s high on Wednesday as liquidity fears weighed on investor sentiment and dragged down shares of non-banking financial companies (NBFCs).

The Sensex fell as much as 878 points from an intra-day high of 35,605 amid a sell-off in banking shares. The index snapped three days of gains to end at 34,780, down 383 points, or 1.1 per cent. The Nifty 50 index closed at 10,453, down 132 points, or 1.24 per cent. The 50-share index had climbed to a two-week high of 10,710 during the day. Both the benchmark indices traded in the green