MARKET COMMENT Mustafa Nadeem, CEO, Epic Research Nifty and Sensex were down due to widespread selling that was seen in the Financial services sector as credit risk emerged post-ILFS firesale and concern over its interest repayment. Yes bank added fuel as RBI trimmed the CEO's term while pointing to its loan book quality and NPA discrepancies. We previously mentioned as well the importance of 11550 being not breached and for Nifty to reclaim its bullish trend it was very much necessary and below that we continue to maintain sell on advances as a strategy. That level is now placed at 11300 and we expect Nifty to continue its downtrend for lower targets of 10600 - 10700 MARKET COMMENT Jayant Manglik, President, Religare Broking Nifty witnessed violent swings and ended half a percent lower in the end. The beginning was upbeat, tracking firm global cues but the rumours of debt crisis in NBFC sector triggered panic selling across the board, especially in banking and housing finance stocks. Though the benchmark index managed to recoup losses significantly in the latter half, situation remained bleak on broader front. We usually see such volatile moves prior to the market bottom or top but it's too early to confirm the same. We believe the coming week would begin in some clarity. Traders should restrict leveraged positions in the meanwhile and prefer only hedged trades. Investors, on the other hand, can start accumulating fundamentally sound counters on dips with medium to long term view YES Bank drags Nifty Private Bank index Nifty Realty index fell almost 4%; top losers Top losers in the housing finance pack COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUME DEWAN HSG. FIN. 345.05 610.55 -265.50 -43.49 111499354 RELIANCE HOME 53.40 61.05 -7.65 -12.53 2312102 REPCO HOME FIN 465.40 510.25 -44.85 -8.79 810144 INDIABULLS HOUS. 1065.25 1159.25 -94.00 -8.11 12906014 CAN FIN HOMES 293.15 308.85 -15.70 -5.08 1985366 LIC HOUSING FIN. 441.00 461.55 -20.55 -4.45 6645915 Top sectoral trend
The Nifty 50 index, on the other hand, hit a low of 10,866 levels, but settled 91 points lower at 11,143.
The decline came on the back of a sharp fall in NBFC stocks. DHFL skidded over 50% in intraday trade on fears of a liquidity crisis. The management, however, assuaged investor concerns and said the company has not defaulted on any repayments. The stock settled 42 per cent lower at Rs 352 on the BSE. According to the analysts, the IL&FS crisis was the main reason behind the selloff. That apart, a rise in bond yields also weighed on the sentiment. READ MORE HERE
In the broader markets, the S&P BSE SmallCap index fell 3 per cent to 15,763 levels, while the S&P BSE MidCap index lost 1.7 per cent to end at 15,596 levels.
YES Bank fell 34 per cent in intra-day trade after the Reserve Bank of India (RBI) trimmed Rana Kapoor's tenure as its MD & CEO. It, however, recovered partially to close 30 per cent lower at Rs 225 levels. The private sector lender said on Wednesday that the RBI had allowed Kapoor to continue only till January 31. According to sources, the RBI has cited corporate governance and regulatory issues for not extending Kapoor’s term. Further, the lender has been directed to search for a successor. CLICK HERE FOR THE STOCK STRATEGY
A rally in Chinese markets helped lift the MSCI's broadest index of Asia-Pacific shares outside Japan 1.15 per cent, buoyed in part by expectations that Beijing will pump more stimulus into its economy to whether the trade war. The MSCI index has rebounded 4.6 per cent from a 14-month low on Sept. 12.
The CSI 300 index of Shanghai and Shenzen shares, which slumped to a two-year low last week, rose 2.4 per cent, on course for its largest weekly gain in more than two years. Japan's Nikkei rose 0.8 per cent, hitting an eight-month high.
(with wire inputs)
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