MARKETS LIVE: Sensex falls over 500 pts, Nifty below 11,000 as NBFCs crack

MARKETS LIVE: Sensex falls over 500 pts, Nifty below 11,000 as NBFCs crack

Courtesy : Agencies24/09/2018 17:07

The benchmark indices are trading over 1.5 per cent lower tracking the weakness in Asian markets.

The bank stocks are trading in red with Nifty Bank index slipping over 2 per cent weighed by an over 4 per cent fall in RBL Bank and IDFC Bank.

In the broader markets, the S&P BSE MidCap index is down over 2 per cent while the S&P BSE SmallCap index slipped around 2.5 per cent.

Seeking to calm the nerves of worried investors, Finance Minister Arun Jaitley on Monday said that the government would take all measures to ensure adequate liquidity for non-banking financial companies (NBFCs) and mutual funds. The minister's remarks come in the wake of stock markets witnessing sudden and stiff fall in intra-day trade on Friday over concerns of a liquidity crisis being faced by some of the NBFCs.

 The Reserve Bank of India (RBI) and the market regulator Securities and Exchange Board of India (SEBI) are closely monitoring developments in financial markets and are ready to take appropriate steps if needed, a central bank statement said on Sunday.

NBFCs extend fall

Shares of non-banking financial companies (NBFCs), including housing finance companies (HFCs), continue to remain under pressure for the fifth straight trading day on the bourses amid the ongoing crisis at the Infrastructure Leasing and Financial Services Ltd (IL&FS).

 Bajaj Finance, Indiabulls Housing Finance, Reliance Home Finance, Central Bank of India, Cholamandalam Investment and Finance Company and Ujjivan Financial Services were down in the range of 5 per cent to 15 per cent on the National Stock Exchange (NSE) in intra-day trade.

Global Markets

Asian shares stumbled in holiday-thinned trading on Monday as China’s decision to cancel talks with the United States sparked fears of a protracted trade war, while oil rallied as Saudi Arabia ruled out increasing supplies to cool crude prices.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell almost 1 per cent. Hong Kong was the worst performer with its Hang Seng index down 1.7 per cent.

Share markets in major Asian centres Japan, China and South Korea were closed for a holiday on Monday, while currency markets were subdued as banks in those countries were shut.

Investors were squarely focused on the Sino-US trade war as China added $60 billion of US products to its import tariff list, retaliating against US duties on $200 billion of Chinese goods that came into effect earlier on Monday.

 

 

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