Sensex retreats nearly 400 points as meltdown in NFBCS resumes
MUMBAI: Fears of defaults by real estate companies hammered shares of non-banking finance companies (NBFCS) on Wednesday, driving benchmark equity index Sensex nearly 400 points lower after a positive start.
Shares of Indiabulls Housing
Finance Ltd fell 13.17% after a
report, citing a
Macquarie sales team note to clients, said its loans to defaultrated Supertech could be over
₹500 crore. The loan, the brokerage said citing its talks with the management, was for a specific project that is ring-fenced and earns monthly rentals of close to
₹30-35 crore, the report added.
On October 10, Brickwork Ratings had downgraded the ratings on ₹1,866.4 crore of Supertech’s bank facilities to default (D) from
BB-. In a wave of selling in
NBFCS, Dewan Housing Finance year, got $2.01 billion in business Corp. Ltd slipped 12.34% and from banking and insurance cusEdelweiss Financial Services Ltd tomers in the June-august lost 10%. “Credit facilities of a Tata Consultancy Serperiod. large property developer in NCR vices (TCS) Ltd’s quarterly earnPut another way, TCS’S BFSI region have been downgraded to ings from the financial sector vertical, if carved out as an indedefault. Investors are concerned have edged past that of Accenpendent unit, will be larger than about its exposure mainly by ture Plc which is nearly double the India’s third largest IT serviNBFCS,” said VK Sharma, head, its size, making the Mumbaices firm, HCL Technologies Ltd, private client group (PCG) & capibased company the world’s largwhich ended with $2.05 billion in tal markets group, HDFC Securiest pure-play information techrevenue in the April-june quarter.“also ties. prominent “Automobile losers stocks as many were nology and consulting firm serIn the last quarter, we
vicing mega banks and insurers. feared lower sales in this festive Financial services sector is became the number one pureseason on fears of rising insurthe largest buyer of services and play IT services firm servicing ance costs and lower liquidity solutions from IT and consulting the banking and financial servifrom NBFCS,” added Sharma. firms, and in the last decade, ces sector across the world,”
BSE’S 30-share Sensex lost Accenture has managed to retain TCS’S chief operating officer, N 1.09% or 382.90 points to close at its dominance of the sector. Ganapathy Subramaniam said 34,779.58 points, while National During the July-september in an interview last week. “This Stock Exchange’s (NSE) 50-share period, TCS got $2.07 billion in is very heartening to see we are Nifty closed 1.24% or 131.70 points business from banking, financial doing well, and the way we are lower at 10,453.05 points. services and insurance or BFSI shaping the industry.” sector. This included $1.63 billion from work across application development and maintenance work and other traditional solution offerings, and $445.9 million from its proprietary platforms like TCS ION.
Accenture, which follows a September-august financial director and chief executive officer will be fully guided by the board of directors, the RBI and other relevant stakeholders. “Further as stated in the bank’s release dated October 11, 2018, the search and selection committee has mandated Korn Ferry to assist the committee in evaluating both internal and external