The benchmark equity indices -- Sensex and Nifty -- on Monday fell owing to a heavy selloff in the banking stocks as investors turned watchful on the financial services sector.
The benchmark equity indices — Sensex and Nifty — on Monday fell owing to a heavy selloff in the banking stocks as investors turned watchful on the financial services sector. Sensex dropped 155.24 points to end at 38,667.33, while Nifty closed down 34.75 points at 11,477.65. “The market fall today was due to the panic reaction following the crash in the stock price of Indiabulls Housing Finance given the fact that it’s a large NBFC with many banks and Mutual Funds having a significant exposure to it. Overall long term outlook has improved significantly after the initiatives taken by the government. We need to see for how long this event will impact sentiments,” investment advisor Sandip Sabharwal told Financial Express Online.
On the Sensex chart, Yes Bank was the biggest loser with over 15 per cent drop. Other major losers were IndusInd Bank, SBI, ICICI Bank, Sun Pharma, HDFC and Axis Bank, losing up to 6.84 per cent. “We expect that in the near term RBI policy outcome on October 4, 2019 will provide some direction to the markets. Further, markets are likely to remain range bound till the beginning of the earnings season from mid-October. Moreover, global developments particularly US-China trade war and crude oil prices may continue to induce volatility in the markets. We suggest investors should stick to stock specific approach,” Ajit Mishra Vice President, Research, Religare Broking.
“Nifty yet again bounced back sharply from our mentioned support of 11,400. Near term, traders should look to remain long on the index with a stop below 11,400. Until this support is protected on the downside expect the index to consolidate between 11,400-11,700 as mentioned earlier. Index is witnessing a phase of consolidation of its recent near-vertical up-move,” Amit Shah, Technical Research Analyst with Indiabulls Ventures.