YES Bank’s U-turn, NBFC bloodbath, 253 stocks at lower circuits
Domestic equity benchmarks Sensex and Nifty snapped their winning streak of three consecutive sessions as sudden wave of across-the-board selloff set in on Wednesday.
After clocking healthy gains during the first half of day, a fresh spell of selling emerged across sectors, even though Asian markets remained largely positive and the rupee traded below the 74 mark.
The selloff was triggered by weakness in NBFC stocks
“Stocks fell because of fear and perception about NBFC stocks as fundamentals are still in good shape,” said G Chokkalingam, founder, Equinomics Research & Advisory. “NBFCs are not under any serious crisis, as net NPAs of these companies are only about 1-2 per cent. The problem is with liquidity adjustment,” he said.
The Sensex plunged 383 points, or 1.09 per cent, to end the day at 34,779, while NSE’s Nifty50 settled 132 points, or 1.24 per cent, lower at 10,453.