Sensex, Nifty suffer 3% flash crashes on NBFC

indices finished with losses Friday after investors were jolted by a sudden mid-session plunge amid a massive sell-off in NBFC stocks.

The BSE Sensex, which opened on a strong footing, suddenly tanked 1,127.58 points, or 3.03 per cent, to hit a low of 35,993.64 in afternoon trade, before staging an equally sharp recovery within minutes.

It finally closed at 36,841.60, down 279.62 points. It saw an intra-day swing of 1,495.60 points.

The broader NSE Nifty shed 91.25 points to finish at 11,143.10.

The indices closed in the red for the fourth day in a row, during which investors lost a massive ₹5.6 lakh crore.

Shares of housing finance firms slumped, with Dewan Housing Finance tumbling up to 42% on fears of a liquidity crisis.

Reports of debt defaults by IL&FS also sparked concerns,

MUMBAI:Benchmark

(Share price in ~ on BSE, drop/rise from previous day’s closing) Top losers Yes Bank Kotak Bank Adani Ports Closing 227.05 1,179.65 362 Indusind Bank 1,761.7 Maruti 8,039.55 Drop 28.71% 3.86% 2.94% 2.38% 2.04% which spilled over into other NBFC counters.

Yes Bank was the worst performer in the Sensex pack, losing a whopping 28.71 per cent, after the RBI curtailed the term of its founding CEO Rana Kapoor.

The indices closed with losses for the third straight week. The Sensex lost a hefty 1,249.04 points, or 3.28 per cent, while the NSE Nifty fell 372.10 points, or 3.23 per cent, during the week. Top gainers Closing ONGC Wipro ITC TCS Asian Paint 180.1 337.35 303.75 2,103.8 1,303.1 Rise 1.95%

1.38% 1.37% 1.30% 1.07%

“The events surrounding Yes Bank and DHFL sent the broader markets sharply lower. The trigger on the surface seems to be the selling of debt papers of DHFL by one of the prominent AMCs, but the broader issue is that of a contagion leading to selloff in papers of other companies,” said Joesph Thomas, Head of Research Wealth Management, Emkay Global Financial Services.