As many as 142 stocks on the BSE recorded their fresh 52-week low which includes NBFCs as well as Housing Finance Companies like PNB Housing Finance, Indiabulls Housing Finance, Motilal Oswal Financial Services, Bandhan Bank, GIC Housing Finance etc. among others.
The S&P BSE Sensex fell over 300 points intraday Friday led by losses in financials, energy, IT as well as auto stocks. But, the real damage was seen in individual stocks.
As many as 142 stocks on the BSE recorded fresh 52-week low, which includes NBFCs as well as housing finance companies like PNB Housing Finance, Indiabulls Housing Finance, Motilal Oswal Financial Services, Bandhan Bank, GIC Housing Finance.
NBFCs, as well as Housing finance companies (HFCs), came under pressure despite Reserve Bank of India's (RBI) relaxation to address liquidity concerns.
The central bank allowed banks to use government securities equal to their incremental outstanding credit to non-bank lenders, over and above their outstanding credit to them as on October 19, to be used to meet liquidity coverage ratio requirements.
Non-bank lenders include all non-banking financial companies (NBFCs) and housing finance companies (HFCs). The above provision will be available with immediate effect and till December 31 this year, the central bank said in a notification.
Other stocks from the Group A segment which hit fresh 52-weeks low include stocks like Shree Cement, Cera Sanitaryware Ltd, Dalmia Bharat, Crisil, Solar Industries, Finolex Industries, Tata Communications, Ujjivan, DB Corp, NCC, Dish TV, Kwality etc. among others.
As many as 40 stocks on the BSE hit a fresh all-time low which includes names like Dixon Technologies, Laurus Lab, AB Capital, ABG Shipyard, PNB Housing, Bandhan Bank, Unitech, Reliance Home Finance, Flexituff Ventures International Ltd etc. among others.
On the NSE, as many as 90 stocks hit a fresh 52-week low which includes names like ABG Shipyard, Adlabs Entertainment Ltd, Allcargo Logistics, Bandhan Bank, Crisil, Crompton Greaves Consumer Electrical Ltd, Cera Sanitaryware etc. among others.
Outlook on markets:
The Nifty experienced extreme volatility during the week as it pared gains after testing 10,700 levels. The index retested 10300 levels once again on Friday. Renewed selling pressure in banking, as well as technology space, led to the sell-off.
Both domestic and global news flows have also added to the weakness and Nifty erased almost all the gains of the week. Most experts feel that if the index fails to close above 10,350-10,400 then the selling pressure could take the index towards 10,000-10,200 levels which have the highest concentration of Put open interest.
"The VWAP of the series is also placed near 10500 levels and further divergence from these levels can be seen if Nifty does moves below high put base of 10200 once again. In such a scenario, Nifty may test its highest Put base of 10000 in the ongoing series itself," Amit Gupta, Head of Derivative from ICICIdirect told Moneycontrol.
"In the current decline, most of the index heavyweights have not seen any major short additions. Thus recovery on the back of short covering seems remote. Selling pressure among out preforming space from Technology and FMCG may be seen during the settlement week. At the same time, Auto and Financial space are likely to remain under pressure," he said.
