NEW DELHI: Equity benchmarks Sensex and Nifty ended with heavy losses on Thursday, dragged by concerns of slowing economic growth and liquidity crunch in the NBFC space.
A rate cut by RBI and change in policy stance failed to lift investor sentiment, as the market was expecting a positive surprise, especially some steps to address the concerns over the poor health of NBFCs.
“While the rate cut of 25 basis points was in line with expectations, concerns over growth and challenges regarding liquidity continued to linger. The market did not cheer the rate cut, as it had already been factored in and something more was expected," said Naveen Kulkarni, Head of Research at Reliance Securities.
Sensex ended 554 points or 1.38 per cent, lower while Nifty finished with a cut of 178 points, or 1.48 per cent. With this, the key indices extended losses into the second consecutive session.
We walk you through the highlights of Thursdays session:
Rs 2.22 lakh cr gone in a day!
The overall market capitalisation of BSE -listed firms dropped to Rs 1,53,19,126 lakh crore from Rs 1,55,41,431 lakh crore in the previous session, making investors poorer by Rs 2.22 lakh crore.
233 stocks hit lower circuits
As many as 233 stocks, including Dilip Buildcon, Indiabulls Integrated Services, Manpasand Beverages, SORIL Infra Resources and Electrotherm (India), hit lower circuit limits on BSE, while Kesar Enterprises, NK Industries, STL Global, Uniply Industries and Prabhat Dairy were among the 129 stocks that hit upper circuits.
169 stocks signalled potential fall
Momentum indicator moving average convergence divergence, or MACD, showed bearish crossovers on 169 counters on BSE, signalling that these stocks may see losses in coming sessions. Among them were, DHFL, GMR Infrastructure, State Bank of India, Infibeam Avenues, India Cements and ACC. On the other hand, Persistent Systems, Polylink Polymer, Organic Coatings, Hindustan Media Ventures and Spectra Industries were among 17 stocks that showed bullish crossovers.
Oversold & overbought stocks
Momentum oscillator Relative Strength Index, or RSI, showed 44 stocks, including Manpasand Beverage, Atlas Jewellery, IIFL Holdings, S Chand & Company, Sadhana Nitro and Pro Fin Capital Services in the oversold zone on BSE. Meanwhile, Tata Teleservices, Star Cement, Refex Industries and Ashari Agencies were among the 32 stocks that entered the overbought zone.
DHFL shares crack 16%
Shares of Dewan Housing Finance Corporation (DHFL) plunged 15.86 per cent to close at Rs 93.90 after rating agencies downgraded the commercial papers (CP) issued by the debt-laden company to default grade. The rating action by Crisil, CARE and ICRA came after the company missed an interest payment on its non-convertible debentures (NCDs) on Tuesday.
Eros Media tanks 20%
Hitting lower circuit limit, shares of Eros International Media (EIML) cracked 20 per cent to hit a 52-week low of Rs 53.10, closing at the same level after a downgrade by rating agency CARE. CARE cut the creditworthiness of the entertainment firm, citing delays or likely default in serving debt availed from banks.
GAIL shares plunge 12%
Shares of GAIL (India) closed with a loss of 11.77 per cent at Rs 316.30 after global brokerage CLSA downgraded the stock from buy to underperform while cutting the target price to Rs 365 from Rs 4Read More – Source