BSE Sensex plummets 464 points over liquidity concerns in NBFCs
Market benchmark BSE Sensex plunged by 464 points or 1.33%to close at 34,315.63 points due to losses in index major Reliance Industries Ltd (RIL), HDFC and Infosys Ltd.
The broader National Stock Exchange (NSE) Nifty too fell over 150 points to crack below the 10,400-mark as financials, information technology (IT) and energy stocks declined.
Sentiments also took a hit on sell-off in non-banking financial companies, led by Indiabulls Housing Finance, Dewan Housing Finance, IL&FS Engineering and Construction which dropped up to 16.55%on prevailing liquidity concerns, brokers said.
Reliance Industries Ltd dropped up to 7% in day trade before settling nearly 5% down on BSE on concerns of its heavy debt and delay in the company’s key refining project, while its gross refining margin fell. The stock fell despite record finanThe cial results for the second quarter.
Meanwhile, the Reserve Bank of India (RBI) on Friday announced more steps to increase liquidity flows to the non-banking financial companies.
Stocks of automakers too faced the heat on fears of lower sale this festive season due to prevailing lower liquidity from non-banking financial companies.
indices closed with losses for the week. The Sensex lost 417.95 points, while the National Stock Exchange Nifty fell 168.95 points, during the period.
Cues from other Asian markets were mixed with early losses were erased as China shares rebounded in afternoon trade after government statements sought to bolster market confidence.
China’s banking and insurance regulator also said on Friday that it may allow bank wealth management subsidiaries to invest directly in stocks.
The 30-share Sensex opened Friday distinctly weak at 34,563.29 and continued to slide to touch a low of 34,140.32 but later recovered part of lost ground on buying in select stocks and finally closed down at 34,315.63, showing losses of 463.95 points, or 1.33%.
The gauge had lost 382.90 points on Wednesday.
The 50-share NSE Nifty plunged 149.50 points, or 1.43%, to end at 10,303.55. During the session, it moved between 10,249.60 and 10,380.10.
MUMBAI: NSE NIFTY TOO FELL OVER 150 POINTS TO CRACK BELOW THE 10,400MARK