Sensex Ends 155 Points Lower; Banking and Finance Stocks Witness Selling

Mon, 30 Sep Closing

   Previous Close   

   Pre-Open   

   09:30 am   

   12:30 pm   

Indian share markets witnessed negative trading activity throughout the day and ended lower.

Sectoral indices ended on a mixed note with stocks in the banking sector and finance sector witnessing most of the selling pressure, while telecom stocks and IT stocks witnessed buying interest.

At the closing bell, the BSE Sensex stood lower by 155 points (down 0.4%) and the NSE Nifty closed down by 35 points (down 0.3%).

The BSE Mid Cap index ended the day down 1.1%, while the BSE Small Cap index ended the day down by 1.2%.

The rupee was trading at 70.74 against the US$.

Speaking of the volatility witnessed in Indian share markets, if you look at the stock market returns over the years, you will see that the markets have never moved in a linear fashion.

What do I mean by that?

It has never been a one-way street - only up or down.

Stock markets have always moved in cycles.

The Time to Buy Stocks is Now

Here's what Radhika Pandit wrote about this in a recent edition of The 5 Minute WrapUp...

• If you would have bought stocks when either the Sensex or the Smallcap index was in a downturn, you would have made big returns once the cycle turned and the bulls took over.
  
  Sarvajeet and I believe we are seeing a similar situation currently.
  
  The economic slowdown does not herald the end of the world or for that matter the end of India. It's a phase and like all phases - This too shall pass.

So, the real question is - Are you taking advantage of these price declines to buy quality stocks?

In the news from finance sector, Indiabulls Housing Finance share price was in focus today.

The stock of the company witnessed sharp selling today after Delhi High Court decided to examine the allegations, in a public interest litigation (PIL) by an NGO, of financial irregularities, siphoning of funds and other violations against the promoters of the company.

Shares of Indiabulls Housing Finance saw their sharpest intraday fall, plunging up to 38%.

As per the news, a bench of Chief Justice D N Patel and Justice C Hari Shankar issued notice to the central government, the Reserve Bank of India (RBI) and Indiabulls seeking their stand on the petition filed by an NGO.

The court also issued notice to the markets regulator, National Housing Bank (NHB), the Serious Fraud Investigation Office (SFIO), Registrar of Companies (ROC) and Sameer Gehlaut, the founder and chairman of Indiabulls group and asked them to file their replies by December 13 - the next date of hearing.

During the brief arguments, NGO 'Citizens Whistle Blower Forum' told the court that around Rs 46 billion was allegedly loaned by Indiabulls to various shell companies which in turn routed the money though other entities back to the promoters.

A senior lawyer said that the NGO was making the allegations without doing proper research and was relying on a letter of BJP leader Subramanian Swamy to Prime Minister Narendra Modi accusing Indiabulls group of misappropriation of funds.

The NGO, whose members include former Delhi High Court Chief Justice A P Shah, former Chief of Naval Staff Admiral L Ramdas, former IAS officer Aruna Roy and activist-lawyer Prashant Bhushan, has sought a direction to the Ministry of Corporate Affairs (MCA) to order an investigation by SFIO into the irregularities alleged against Indiabulls.

Apart from that, the petition has also sought a direction to RBI and NHB to investigate the financial affairs of IBHFL and to direct a special audit of IBHFL.

Indiabulls had earlier opposed the plea saying it was "malicious" and "mala fide" petition which was causing loss to its business and reputation.

Apart from the above, the stock of the company also came under pressure today after RBI put Lakshmi Vilas Bank under prompt-corrective action, thus casting a doubt over the company's merger plans with the lender.

How all the above matters pan out remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.

Moving on to the news from the banking sector, Yes Bank share price was in focus today. The stock of the private lender witnessed selling pressure even as the company said it received approval from the Reserve Bank of India (RBI) to raise capital.

In an exchange filing, the lender said that it has received an acknowledgment from the RBI to go ahead with the proposed increase in its authorized share capital and that the bank will now seek necessary shareholders' consent.

Last week, Yes Capital, one of the promoter entities of Yes Bank, sold 1.8% stake in the bank for Rs 2.4 billion.

In a filing to exchanges on Thursday, Yes Bank said, "YES Capital (India) Private Ltd ("YCPL"), part of the promoter group of YES Bank, has today sold 1.8% shareholding in the Bank."

It added that proceeds from the stake sale by Yes Capital will be utilized to prepay its entire balance outstanding NCDs of Yes Capital subscribed by various schemes of Franklin Templeton Asset Management (India) Pvt. Ltd.

In September 2017, Yes Capital had placed rated, zero coupon NCDs worth Rs 6.3 billion with Franklin Templeton. The NCDs were scheduled to mature in October 2020.

Earlier, another promoter entity Morgan Credits had sold 2.3% stake in the bank for Rs 3.4 billion, to prepay a certain part of its outstanding dues to Reliance Nippon Life AMC.

The above developments come at a time when concerns are being raised over the bank's exposure in the NBFC Altico Capital which has recently defaulted on interest payment.

Note that the stock of Yes Bank has been under pressure ever since the RBI curtailed its promoter-chief executive Kapoor's term on corporate governance concerns. Many of the bank's past lending bets under Kapoor are haunting the earnings now and keeping the share prices depressed.

How this pans out remains to be seen. Meanwhile, we will keep you updated on all the developments from this space. Stay tuned.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers