Business Standard

Sensex closes 35 points lower, Yes Bank tanks 30%


IANS Mumbai
After a volatile trade session on Tuesday, Sensex and Nifty finished on a flat-to-negative note amid weak global cues as China reported a weaker than expected factory data and investors awaited the US Fed policy decision, due on Wednesday.
The BSE Sensex fell 35.78 points, 0.09 per cent lower to 39,031.55, and the broader Nifty closed 6.50 points or 0.06 per cent lower.
"A fresh round of panic gripped banks and finance company stocks as Yes Bank delivered a large loss for Q4 over the weekend... Participants wondered as to what would be the trickle-down effects of these developments on other finance companies, equity markets, debt mutual funds and general liquidity available in the markets," said Deepak Jasani of HDFC Securities.
The PSU Bank Nifty index fell the most on the NSE, closing 3.34 per cent lower. Syndicate Bank fell the most, closing over 7 per cent lower and the Central Bank, Union Bank, Bank of Baroda, Allahabad Bank and Canara Bank fell over 5 per cent.
"Stocks such as Yes Bank, Hero Motocorp reacted to results, while realty shares suffered on fears of liquidity drying up for them and PSU Banks came under selling pressure on fears of fresh slippages occurring due to the issues faced by NBFCs and some other corporate groups," Jasani added.
Yes Bank finished nearly 30 per cent on the BSE after the private lender reported its first ever loss, for the fourth quarter, on account of a spike in bad loans.
With no resolution to its problems in sight, Jet Airways continued to fall on Tuesday, and closed 8.4 per cent lower.
"IT index was buzzing throughout the day and it played a vital role in defending key supports for the benchmark index. Apart from this, metal stocks witnessed a good buying interest from lower levels and hence, we expect some catch-up moves in other counters to the marquee name Tata Steel," Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.

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First Published: Apr 30 2019 | 6:30 PM IST

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