Sensex closes 464 points lower, Nifty falls to 10,303; YES Bank top loser
The Sensex fell 464 points or 1.33 per cent to close at 34,315.63 points on losses in index major Reliance Industries, HDFC and Infosys. While the Sensex touched an intra day low of 34140, Nifty fell to 10,249 level. YES Bank (6.06%), HDFC (4.32%), and Reliance (4.11%) were the top Sensex losers.
Of 30 Sensex stocks, 23 closed in the red.
Sentiments also took a hit on sell-off in NBFCs, led by Indiabulls Housing Finance, Dewan Housing Finance, IL&FS Engineering and Construction which dropped up to 16.55 per cent on prevailing liquidity concerns, brokers said.
Reliance Industries dropped up to 7 per cent despite record financial results for the second quarter.
Meanwhile, the Reserve Bank Friday announced more steps to increase liquidity flows to the non-banking financial companies.
The RBI permitted banks to use government securities equal to their incremental outstanding credit to NBFCs, over and above their outstanding credit to them as on October 19, to be used to meet liquidity coverage ratio requirements.
Sun Pharma (2.52%), Kotak Bank (1.78%) and Vedanta (1.51%) were the top Sensex gainers.
Mid cap and small cap stocks also took a beating with the indices falling 1.10% and 1.32%, respectively. IT stocks led the losses with the BSE IT index falling 381 points to 14,295 level.
Auto stocks also led the market lower on fears of lower sale this festive season due to prevailing lower liquidity from NBFCs, with the BSE auto index losing 1.42% or 281 points to 19,572.
Market breadth was negative with 867 stocks closing higher compared to 1722 falling on the BSE. 157 stocks were unchanged.
Cues from other Asian markets were mixed with early losses were erased as China shares rebounded in afternoon trade after government statements sought to bolster market confidence.
China's banking and insurance regulator also said on Friday that it may allow bank wealth management subsidiaries to invest directly in stocks.
Stock exchanges and money markets were closed yesterday on account of "Dussehra".
On Wednesday, the Sensex finally ended 1.09% lower at 34,779 points. The Nifty too ended 131 points or 1.24% lower at 10,453. Prior to that, the Sensex had risen nearly 1,161 points in the past three sessions on the back of unabated buying by domestic institutional investors (DIIs) and rebound in global equity markets.