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Business News/ Market / Stock-market-news/  Closing bell: Sensex closes 280 points lower after 1,500-point swing on DHFL default scare
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Closing bell: Sensex closes 280 points lower after 1,500-point swing on DHFL default scare

BSE Sensex closed 279.62 points lower at 37,121.22, while the Nifty 50 ended 91.25 points down at 11,143.10. Here are the highlights from the markets

BSE Sensex and NSE’s Nifty 50 traded lower on Friday. Photo: MintPremium
BSE Sensex and NSE’s Nifty 50 traded lower on Friday. Photo: Mint

OTHERS :Mumbai: The BSE Sensex and the NSE Nifty 50 closed lower for the fourth straight session on Friday, dragged mainly by finance stocks. Stock markets started the day with gains but plunged over 3% after reports of DHFL defaulting on its commercial paper. However, the markets recovered after DHFL clarified that the company had not defaulted. The DHFL stock closed at Rs 351.55 per share, down 42.43%. The Sensex closed 0.7% down and the Nifty 50 ended 0.85 lower. Moreover, RBI’s denial to a three-year extension to Yes Bank’s CEO Rana Kapoor also added pressure. Yes Bank shares fell 28.71% to close at Rs 227.05. The Nifty Bank Index plunged 2.59%. Here are the highlights from the markets:

21 Sep 2018, 03:37:00 PM IST

Closing bell: Sensex, Nifty extend losses for 4th session

BSE Sensex closed 279.62 points, or 0.75%, lower at 37,121.22, while the Nifty 50 fell 91.25 points, or 0.81%, to close at 11,143.10. In intraday trade, the Sensex had declined as much as 3.04%, or 1,127.58 points, to 35,993.64, while the Nifty 50 had dropped as much as 3.27%, or 367.90 points, to 10,866.45.BSE MidCap and SmallCap fell 1.72% and 3%, respectively. All the sectoral indices on BSE, except energy and oil and gas, ended lower with realty and bankex losing over 3% followed by finance, which was down 2.51%. Energy and oil and gas gained 0.77% and 1.50%, respectively.ONGC, Wipro, ITC, BPCL and IOC were among the top gainers, whereas Yes Bank, Indiabulls Housing Finance, Kotak Bank, Bajaj Finance and Adani Ports were among the major losers.On Wednesday, FIIs sold shares worth Rs 2,184.55 crore on net basis, while DIIs purchased equities worth Rs 1,201.3 crore, provisional data showed.

21 Sep 2018, 03:21:00 PM IST

‘Panic has struck the market,’ says Deven Choksey

“Panic has struck the market. Debt funds had to sell some of their holdings to meet the collateral damage caused by IL&FS positions. Some of the funds had to sell off housing finance companies, as their exposure was huge and projects are not taking off,” said Deven Choksey, group managing director, KR Choksey Investment Managers Pvt. Ltd. “The arbitrage funds, are not finding easy liquidity in these stocks at the time of rollover of contracts,. So, they have been selling heavily. All the factors together are weighing on the market,” added Choksey.

21 Sep 2018, 03:13:00 PM IST

‘Not delayed or defaulted on any payment’: Kapil Wadhavan of DHFL

“It is happening to all HFCs (housing finance companies), and not just us. I fail to understand why,” Kapil Wadhavan, chairman & managing director of DHFL told Mint. “This is unprecedented. We have not delayed or defaulted on any payment..We have sufficient cash reserves. It seems to be the outcome of sentiment. We are communicating with all stakeholders, including investors,” said Wadhavan.Markets dropped sharply in reaction to a sharp selloff in Dewan Housing Finance Ltd.(DHFL). DHFL shares fell as much as 59.67% to Rs. 246.25, a level last seen on 5 January 2017. DHFL is a liquid stock, and part of derivatives segment, and hence has not circuit limits. They later recovered some losses but still traded 39.76% lower at 367.80 points. Read more

21 Sep 2018, 03:00:00 PM IST

Gold prices rise on local demand, silver falls

Gold prices edged higher by Rs 50 to Rs 31,700 per 10 gram at the bullion market Friday in line with a firming trend overseas amid increased buying by local jewellers. However, silver shed Rs 20 to Rs 38,080 per kg on lack of buying support from consuming industries. In the national capital, gold of 99.9% and 99.5% purity recovered by Rs 50 each to Rs 31,700 and Rs 31,550 per 10 gram, respectively. It had shed Rs 10 yesterday. On the other hand, silver ready eased by Rs 20 to Rs 38,080 per kg, while weekly-based delivery rebounded by Rs 255 to Rs 37,575 per kg on speculative buying. Silver coins however held steady at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces. PTI

21 Sep 2018, 02:42:00 PM IST

Govt likely to announce lower borrowing progamme next week: Report

The Indian government plans next week to announce lower than expected borrowing needs for the second half of the fiscal year ending in March, reported Reuters, citing four people briefed on the matter, in a move that could remove some nervousness in the bond market.Senior Indian government officials met with a select group of market participants earlier this week and assured them that the bond market borrowing programme for October to March would be lower than expected, said the sources directly aware of the matter, who asked not to be named as the discussions were private. Reuters

21 Sep 2018, 02:37:00 PM IST

GMR Infra wins contract in Greece

GMR Infra shares traded 9.58% down at Rs 16.05 per share. The company said the government of Greece has issued a letter of award to the consortium of GMR Airports Ltd, a unit of GMR Infrastructure Ltd, and TERNA Group for a new international airport.

21 Sep 2018, 02:12:00 PM IST

Liquidity issues faced by IL&FS keeping the market nervous, says analyst

Sanjiv Bhasin of India Infoline said that the liquidity issues being faced by Infrastructure Leasing & Finance Services Ltd (IL&FS) is keeping the market nervous. Fears of tightness in the debt market is making investors jittery about housing finance stocks, he added. Sanjiv Bhasin of India Infoline said that the liquidity issues being faced by IL&FS is keeping the market nervous.IL&FS is planning to sell a majority stake in its financial services unit and additional assets worth ₹ 4,500 crore to pay down debts as the company rushes to meet its obligations and avoid bankruptcy. IL&FS has also asked the government to clear dues worth as much as ₹ 16,000 crore for work completed by the company, reported Mint, citing three executives familiar with the development said, requesting anonymity.

21 Sep 2018, 02:00:00 PM IST

Market update: Sensex, Nifty recover

BSE Sensex traded lower by 233.69 points, or 0.63%, to 36,887.53, while the Nifty 50 fell 78.25 points, or 0.70%, to 11,156.10. BSE MidCap and SmallCap fell 1.53% and 2.78%, respectively.In intraday trade, the Sensex fell as much as 1,495 points to 35,993.64 from day’s high of 37,489.24. The Nifty 50 fell 480.35 points to a low of 11,234.35 from day’s high of 11,346.80.All the sectoral indices on BSE, except metal and oil and gas, traded lower with realty losing most at 3.38%, followed by finace, bankex, industrials and healthcare.

21 Sep 2018, 01:32:00 PM IST

DHFL recovers after management says not defaulting on commercial papers

Shares of Dewan Housing Finance Corp. Ltd (DHFL) traded 41.58% lower at Rs 356.75 per share, recovering from an intraday low of Rs 246.25. The company’s management clarified that DHFL had not defaulted on its commercial paper. The stock fell as much as 59.67% to Rs 246.25, following the DHFL default rumour.“The rumours are causing distress in the markets. The company is sitting on a strong liquidity position,” BloombergQuint quoted Kapil Wadhawan, chairman and managing director at Dewan Housing Finance, as saying. “Short-term borrowing is very small and have spiked recently,” he added.Wadhawan also clarified to CNBCTV18 that the company has no exposure to Infrastructure Leasing and Financial Services Ltd (IL&FS), which is struggling to repay its debts.Shares of other finance companies fell as well. Indiabulls Housing Finance Ltd slumped 23%, Gruh Finance 15%, LIC Housing Finance 15%, L&T Housing Finance 12%.

21 Sep 2018, 01:27:00 PM IST

European equities advance at open

Europe’s main stock markets trod higher Friday at the opening bell, with London’s benchmark FTSE 100 index gaining about half a percentage point to 7,406.70 points. In the eurozone, Frankfurt’s DAX 30 won 0.6 percent to 12,402.72 points but the Paris CAC 40 added 0.2 percent to 5,463.66, compared with Thursday’s closing levels. AFP

21 Sep 2018, 01:07:00 PM IST

Market updates: Sensex slips 900 points

BSE Sensex traded lower by 965.91 points, or 2.60%, to 36,155.31, while the Nifty 50 fell 289.30 points, or 2.58%, to 10,945.05. BSE MidCap and SmallCap fell 6.72% and 6.36%, respectively.

21 Sep 2018, 12:58:00 PM IST

Stocks of housing finance companies tank

Shares of housing finance companies fell. Dewan Housing Finance shares plunged 47.63% to Rs 319.75, Indiabulls Housing Finance down 16.77% at Rs 962.55. Can Fin Homes fell 6.82% to Rs 286.80. PNB Housing Finance declined 4.24% to Rs 1181.55. LIC Housing Finance was down 14.10% at Rs 396.45. HDFC fell 0.69% to Rs 1818.45.

21 Sep 2018, 12:35:00 PM IST

Mahindra shares trade higher

Shares of Mahindra and Mahindra Ltd rose as much as 3.08% to Rs 976.50. The company is renewing its focus on introducing bigger sport-utility vehicles (SUVs) and multi-purpose vehicles as it seeks to avoid a deeper foothold in the increasingly crowded market for compact SUVs, reported Mint, citing four people aware of the plans. The shift in strategy follows subdued demand for compact SUVs introduced by Mahindra in the past few years, added the report. Read more

21 Sep 2018, 12:18:00 PM IST

Sun Pharma gets drug approval from Australian regulator

Sun Pharmaceutical Industries Ltd said that it has received approval from the Australian Therapeutic Goods Administration for its speciality product, ILUMYA, (tildrakizumab), for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy. Sun Pharma shares traded 1.12% down at Rs 640.05.

21 Sep 2018, 11:55:00 AM IST

Shares of oil marketing companies trade higher

Shares of oil marketing companies (OMCs) Bharat Petroleum Corp. Ltd, Hindustan Petroleum Corp. Ltd and Indian Oil Co. Ltd traded higher. The government is planning to ask state oil firms to lock in their crude futures purchase prices, anticipating a spike when U.S. sanctions on Iran snap back again in November, reported Reuters, citing a government source. BPCL shares rose 1.93% to Rs 372.15. HPCL was up 2.58% at Rs 58.30. IOC shares gained 3.32% to Rs 158.50.

21 Sep 2018, 11:35:00 AM IST

Shares of sugar mills fall after CCI fine

Shares of Bajaj Hindusthan Sugar, Dalmia Bharat Sugar and Industries and Balrampur Chini Mills fell after the Competition Commission of India (CCI) on Thursday imposed a penalty of Rs 38.05 crore on sugar mills and their associations for rigging bids in respect of joint tender floated by oil marketing companies for procurement of ethanol for blending with petrol. Bajaj Hindusthan said after market hours on Wednesday that CCI imposed a penalty of Rs 12.35 crore. The company said it will appeal against the order.Bajaj Hindusthan shares fell as much as 9.16% to Rs 10.51, their biggest intraday percent fall since May 14. Dalmia Bharat Sugar and Industries shares slumped as much as 5.645 to Rs 86.05. Balrampur Chini Mills shares were down as much as 3.02% to Rs 84.90. Reuters

21 Sep 2018, 11:13:00 AM IST

Mega bank merger: All eyes now on share swap ratio

The Nifty PSU Bank Index was up 2.05% led by SBI, which was up 2.38%, Bank of Baroda 1.80%, Oriental Bank 1.52% and Canara Bank 1.48%.

21 Sep 2018, 10:55:00 AM IST

Market updates: Sensex, Nifty trade higher

BSE Sensex opened at 37,278.89, up 157 points, or up 0.42%, from its previous close. It surged 368 points to a high of 37,489.24. The Nifty 50 opened at 11,271.30, up 36.95 points, or 0.32%, from its previous close. The 50-share index jumped 112.45 points to a peak of 11,346.80.At 10.50am, the Sensex traded higher by 265.02 points, or 0.71%, to 37,386.24, while the Nifty 50 rose 81.35 points, or 0.72%, to 11,315.70. BSE MidCap was up 0.46%. SmallCap rose 0.13%.All the sectoral indices on BSE, except IT and teck, traded higher led by metal, which was up 2.10%, oil and gas, energy and basic materials.Axis Bank, ICICI Bank, Tata Steel, IOC and Mahindra were among the top gainers, whereas Yes Bank, Infosys, Hindustan Unilever and Sun Pharma were among the major losers. In the 30-share Sensex basket, 24 stocks advanced, 7 declined and 1 unchanged. In the Nifty 50, 37 advanced, 12 declined and 1 unchanged.

21 Sep 2018, 10:20:00 AM IST

ICICI Bank shares rise nearly 4% on fund raising plan

ICICI Bank shares rose as much as 3.91% to Rs 333.40 after the bank on Wednesday said that it will consider offshore fund raising via issuances of debt instruments. Moreover, the Securities and Exchange Board of India on Tuesday said that ICICI Bank has replied to its showcause notice with respect to a probe into alleged regulatory lapses involving its chief executive officer Chanda Kochhar, her husband and NuPower Renewables promoter Deepak Kochhar and his business dealings.

21 Sep 2018, 10:08:00 AM IST

SBI says oversold rupee may recover to 68/dollar as oil peaks

Indian rupee may be set to recover as oil peaks out and investors realize the currency has been sold off too heavily amid the emerging-market rout, State Bank of India or SBI says. The currency’s recent slide is also likely to be self-correcting to some extent as its weakness will help boost exports, said Shantanu Shukla, Singapore-based vice president for global markets at SBI.“In the short term, the rupee is suffering from the market sentiment,” Shukla said in an interview. “Right now it’s contagion. Everything is being painted with the same brush. I don’t think beyond 70 is a number that the Indian rupee should trade at.” Read more

21 Sep 2018, 09:37:00 AM IST

ILFS Transportation Networks shares down 6%

Shares of ILFS Transportation Networks Ltd fell as much as 6.49% to Rs 22.30. Infrastructure Leasing and Financial Services Ltd (IL&FS) is planning to sell a majority stake in its financial services unit and additional assets worth ₹ 4,500 crore to pay down debts as the company rushes to meet its obligations and avoid bankruptcy, Mint reported, citing three executives familiar with the development said, requesting anonymity.

21 Sep 2018, 09:30:00 AM IST

jet Airways shares slump 8%

Jet Airways shares slumped as much as 8% to Rs 224.70. On Thursday, a Jet Airways flight bound for Jaipur had to turn back to Mumbai on Thursday for failure to maintain cabin pressure, leading to nose and ear bleeding among several passengers.Moreover, a consortium of overseas lenders to Jet Airways (India) Ltd may ask the airline to expedite the repayment of loans worth $150 million amid its deteriorating financial health, reported Mint, citing two people directly aware of the matter said, requesting anonymity.

21 Sep 2018, 09:22:00 AM IST

Yes Bank shares tank 34% as RBI asks bank to find new CEO

Yes Bank shares tumbled as much as 34.03% to Rs 210.10 as many brokerages has downgraded the stock and cut its target price after India’s central bank denied three year extension for its chief executive officer Rana Kapoor and asked him to step down after 31 January 2019. Brokerage firms Goldman Sachs, Nomura Research, Citigroup and IDFC Securities have downgraded the stock and slashed its target price. Of the analysts covering the stock, 39 have a “buy” rating, nine have a “hold” rating, while four have a “sell” rating, showed Bloomberg data.Goldman Sachs slashed its rating to neutral from buy and reduced its target price to Rs 300 from Rs 383 a share. Nomura Research downgraded the stock to Neutral from buy and reduced its target price to Rs 345 from 500 earlier. Citigroup cut to sell from buy and cut its target price to Rs 270, down 39% from its earlier target. IDFC Securities Ltd has given underperformer rating from neutral and decreased its target price to Rs 230 a share from Rs 350 a share.Brokerage firm Jefferies India believes that “we do not subscribe to the view that without Rana Kapoor there is no future for this systemically large bank, or that its financials have been cooked up. CET 1 is low but we do not see a material growth slowdown. More clarity is needed, and we do have questions, but we are not panicking”. The firm has maintained its buy rating but cut its target price to Rs 365 a share from Rs 445. Read more

21 Sep 2018, 09:08:00 AM IST

Rupee strengthens against US dollar

The Indian rupee advanced against the US dollar, tracking gains in Asian currencies amid lack of any further escalation in the trade tensions between US and China. At 9.08am, the rupee was trading at 71.92 to a dollar, up 0.80% from its Wednesday’s close of 72.38. The home currency opened at 71.86 per dollar. The 10-year gilt yield stood at 8.031%, below its previous close of 8.07%. Bond yields and prices move in opposite directions. The rupee has weakened 11.5% in 2018, while foreign investors have sold $923.80 million and $6.51 billion in the equity and debt markets, respectively.

21 Sep 2018, 08:53:00 AM IST

How IPOs listed in 2018 are performing

Shares of more than half of all companies that went public this year are trading below their issue price, hurt by market volatility, aggressive pricing and sometimes stock and sector-specific issues.

21 Sep 2018, 08:45:00 AM IST

Commodity corner: Gold prices inch up, Oil gains

Gold prices edged higher to a one-week high as the dollar weakened on receding fears of a full-blown Sino-US trade war, with the yellow metal heading for its first weekly gain in four. Spot gold inched up 0.2% to $1,209.38, after touching its highest since Sept. 13 at $1,210.01. It has risen 1.3% so far this week. US gold futures were up 0.3% at $1,214.30 an ounce.Oil prices dipped on Friday after falling in the previous session as US President Donald Trump urged OPEC to lower crude prices ahead of its meeting in Algeria this weekend. International benchmark Brent crude for November delivery was down 3 cents at $78.67 a barrel by 7.37am. US West Texas Intermediate crude for October delivery fell 16 cents to $70.16 a barrel.Metals: London copper rose on Friday and was on track to post its biggest weekly advance in four weeks as investors viewed that trade tariffs would have a softer impact to global growth than earlier feared. London Metal Exchange copper rose 1% to $6,140 a tonne, up nearly 3% this week. Premiums for zinc have surged to $345 a tonne, the highest in at least six years amid a squeeze on supply in China. Reuters

21 Sep 2018, 08:32:00 AM IST

Opening bell: Cues to look out for before trading today

US markets closed with gains sending key benchmark indices to record highs. S&P 500 was up 0.78% at 2,930. Tracking the gains, Asian markets opened higher.■ Keep an eye on Yes Bank Ltd. The Reserve Bank of India allowed the bank’s chief executive Rana Kapoor to continue in the role only till 31 January 2019. According to Business Standard, some brokerages have slashed their rating on the stock.■ Passengers on a Jet Airways flight suffered nose and ear bleeding after the crew reportedly forgot to switch on the cabin air pressure controls. According to reports, some passengers are threatening legal action and compensation.■ Cash-strapped Hotel Leelaventure defaulted on payment of quarterly interest to LIC, reports Business Standard.■ Lenders to stressed power assets may decide on debt recasts, sale of assets and one-time settlements by 10 October, failing which they may approach bankruptcy courts, reports Mint.■ State-owned Power Grid Corporation of India Ltd has got shareholders’ approval for raising up to Rs20,000 crore through bonds or debentures on private placement basis in 2019-20, reports PTI.■ Lastly, the government is planning to ask state oil firms to lock in their crude futures purchase prices, reports Reuters. According to the report, the move would be another step to tackle a slide in the rupee. R Sree RamWith inputs from Reuters

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