Advertisement
Thursday, Jul 07, 2022
Outlook.com
Outlook.com
Markets Outlook

Rumours On Banks Keeps Markets On Edge With Financial Sector Shares Seeing A Nosedive

Nifty shed 114.55 or 1 percent at 11,359.90 and Sensex was down by 361.92 points or 0.94 per cent at 38,305.41.

Rumours On Banks Keeps Markets On Edge With Financial Sector Shares Seeing A Nosedive
Rumours On Banks Keeps Markets On Edge With Financial Sector Shares Seeing A Nosedive
outlookindia.com
2019-10-01T16:42:52+05:30

It was day of extreme volatility on Dalal street. NSE’s Nifty 50 and BSE’s Sensex 30 both opened in green territory and gained around half a percent in the initial trade.  But the rally was short lived, as financial stocks, both banks and NBFCs, came under heavy selling pressure, taking the Nifty and sectoral index, Bank Nifty, deep into red in mid-session trade.

Leading the pack of losers in the financial space was Yes Bank, which lost 22 per cent to close at Rs 32.55. At this level, the bank has lost more than 60 per cent of the value at which it had made a Qualified Institutional Placement (QIP) in which the best of the names in the financial market had participated. Yes Bank was followed by RBL bank which lost 8 percent to close at Rs 300.

By the end of the day, Nifty had shed 114.55 or 1 percent at 11,359.90 and Sensex was down by 361.92 points or 0.94 per cent at 38,305.41. Nifty hit a high of 11,554 and a low of 11,247 indicating the broad range of volatility. Sensex touched a low of 37,929 and a high of 38,923 points.

More than anything else, it was the overactive rumour mills that had spread fake news about several private sector banks which lead to fear and panic in the financial stocks.

From customers facing difficulties in logging into their online account to branches of some banks witnessing massive withdrawals, unverified statements circulated on the WhatsApp accounts even after the banks named had clarified that all their branches were working fine and there was no rush to withdraw money. Also, overexposure to one particular group was also denied.

Bank Nifty, which was the at the centre of the market movement, witnessed a fluctuation of more than 1,449  points, which is close to 5 per cent on an intraday basis. It had touched a high of 29,526 while the low for Tuesday trade was 28,077. It ended the day with a drop of 1.3 percent or 377 points closing at 28,725.

The markets are closed on Wednesday on account of Gandhi Jayanti. When they open for trade on Thursday, it would be the day of expiry for weekly option contracts of Nifty and Bank Nifty. It is unlikely, therefore, that there would be any respite from the volatility, as expiry of derivative contract usually leads to several ups and downs in the market.

(Shilpa Nagpal is an analyst at Market Wizards Securities Private Ltd)

 

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

In happy times and sad, Habba Khatun’s sensuous songs make both young and old emotional. With the never-ending conflict bringing tragedies to every doorstep, Habba’s lyrics of separation amplify their mourning.

How Indian Laws Govern People’s Right To Love And Live

How Indian Laws Govern People’s Right To Love And Live

In India, only those relationships between a man and a woman are considered to be legitimate when there is a marriage between the two.

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Virat Kohli, 33, had recently stepped down as India's T20I captain and was subsequently removed as the ODI captain.

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

A Mahila Congress leader, who is the face of the ‘Ladki Hoon, Lad Sakti Hoon’ campaign, however, has accused the party of anti-women bias after she was denied a ticket.

Advertisement