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Sensex plunges 362 points, Nifty below 11,400, Yes Bank shares crash 24%; key points

The Financial Express logo The Financial Express 01-10-2019 FE Online

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The headline index Sensex recouped losses in the last hour of trade on Tuesday, after crashing over 737 points to trade even as investors were concerned over developments in the financial sector. The Sensex ended 362 points lower at 38,305, while the Nifty ended the session below the 11,400-mark. Intra-day, the broader NSE Nifty too dived over 227 points to hit 11,247.90. Yes Bank share price crashed over 24 per cent on Tuesday, registering fifth consecutive session of fall, after Rana Kapoor-led promoter entities informed the stock exchanges that they have sold further stake in the bank. Rana Kapoor and his group entities have sold 2.16% stake worth Rs 510 crore in the bank, according to a regulatory filing. The stake sale was done through open market transactions on September 26-27 last week. Following this, Rana Kapoor and his group entities' stake has now come down to 4.72 per cent in the bank.

Apart from Yes Bank, shares of IndusInd Bank, SBI, Bharti Airtel, ONGC, Tata Steel, TCS, RIL ended up to 6% lower. HDFC twins, Maruti Suzuki, M&M, Kotak Mahindra Bank shares were the major gainers in the Sensex-pack, closing up to 1.8% higher. Taking stock of the volatile session,  Ajit Mishra Vice President, Research, Religare Broking said that weak macro data points as well as disappointing auto sales numbers weighed on the investor sentiment. "We expect that the RBI monetary policy may provide further direction to the markets. We envisage a 25 bps rate cut in the policy, however, the central bank?s outlook on inflation and growth would be a key monitorable. Further, global developments such as US-China trade war as well as crude oil price movement amongst rising tension between Saudi Arabia and Iran would keep the market participants on edge," he noted. 

A host of economy data have dampened spirits after Core Sector data came in lower. The IHS Markit India Manufacturing PMI was at 51.4 in September, unchanged from August and thereby posting its joint-lowest reading since May 2018. Sales of Maruti Suzuki, Toyota Kirloskar, Bajaj Auto, Ashok Leyland and Mahindra and Mahindra have shown a significant decline in the month.

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