NEW DELHI: The equity markets on Friday witnessed a dramatic crash as
Sensex lost above 1,000 points in intra-day trading.
The 30-share BSE index plunged 1,127.58 points to hit the day-low of 35,993.64, as investors went on a selling spree amid volatile cues. The broader 50-share NSE
Nifty too cracked below the 11,000-mark, hitting the intra-day low of 10,866.45, losing more than 400 points.
At 1.28 pm, the Street had recovered to some extent, Sensex was close to regaining the 37,000-mark. Both the benchmark gauges were still down more than half a per cent each.
(Image source: Reuters)
The rout came in the small cap and mid cap indices, which were down 4 per cent and 3 per cent, respectively.
Market analysts pointed towards the crisis in IL&FS, an infrastructure finance conglomerate, while reasoning the crash. "It's the elephant in the room and anybody who has exposure to IL&FS will feel the heat," Sanjiv Bhasin, Executive VP-Markets & Corporate Affairs, India Infoline said.
IL&FS is facing severe liquidity crunch and has recently defaulted on repayment of Rs 100 crore. It is currently under the scanner of Reserve Bank of India (RBI).
Shares of non banking financial companies like Dewan Housing Finance Corporation, Indiabulls Housing Finance and Can Fin Homes all plunged up to 55 per cent.
Yes Bank was the biggest Sensex loser, cracking 34 per cent to hit a one-year low after the Reserve Bank Wednesday curtailed the term of its founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019.
The markets had in fact opened on a buoyant note on Friday with Sensex gaining more than 300 points in initial trading.
The markets however, have been volatile over the last couple of weeks. Till Wednesday, Sensex had lost more than 1,700 points in 20 days over a weak
rupee, high crude
oil prices and
trade war jitters between US and China.
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