DHFL crashed over 50 percent on concerns of liquidity crisis. However, the management clarified that the fundamentals of the company stay intact and the company is sitting on strong liquidity.
The stock closed 42 percent lower at Rs 351.55.
“We are sitting on strong liquidity, we are extremely conservative on liquidity. Not a single repayment chew us, we always take care of interest rates and always ready for a couple of quarters ahead,” Kapil Wadhawan, CMD, DHFL
Yes Bank cracks on brokerage downgrade:
Another stocks which remained on sellers' list was Yes Bank. It dropped as much as 34 percent intraday to register its fresh 52-week low and record its worst fall since listing after the Reserve Bank of India (RBI) cut the tenor of Rana Kapoor, promoter, chief executive and managing director, to January 31, 2019.
Most brokerage firms, both global and domestic, downgraded the stock and reduced their target prices to reflect the near-term pain
DSP MF sells DHFL shares which fuelled liquidity concerns:
The management of DSP Mutual Fund told CNBC-TV18 that it sold DHFL paper worth Rs 200-300 crore recently in a bid to improve liquidity and reduce overall maturity.
Further, they added that the fund house has some exposure to IL&FS Group and added that they have already marked down holding on marked to market ratio
Rise in bond yields weighed on NBFCs:
The 10-year benchmark bond yield is currently trading above the 8 percent mark. A widening current account deficit as well as selling by foreign institutional investors are exerting upward pressure on bond yields.
The 10-year bond rose to 8.23 percent last week, its highest since Nov 14, 2014 while the rupee fell to a life-time low of 72.99 to the dollar on September 18, said a Reuters report. Rising bond yields will also have negative impact on NBFCs,
Technical Factors:
The Nifty50 which slipped below 100-days moving average and 100-days exponential moving average (EMA) bounced back from lows and formed a strong bearish candle. The index is now trading below crucial short-term moving averages such as 5-13, 20, and 50-EMA.
Nifty recovered by around 300 points from its panic lows but overall bears are keeping their tight grip on the market. The index has also broken its support placed at 11,171 and bulls will only be able to take control if the index reclaims 11333 zones, suggest experts.
“Nifty formed a strong Bearish candle on the daily scale with its biggest intraday fall in last many months. However it recovered by around 300 points from its panic lows but overall bears are keeping their tight grip on the market,”
“We are sitting on strong liquidity, we are extremely conservative on liquidity. Not a single repayment chew us, we always take care of interest rates and always ready for a couple of quarters ahead,” Kapil Wadhawan, CMD, DHFL
Yes Bank cracks on brokerage downgrade:
Another stocks which remained on sellers' list was Yes Bank. It dropped as much as 34 percent intraday to register its fresh 52-week low and record its worst fall since listing after the Reserve Bank of India (RBI) cut the tenor of Rana Kapoor, promoter, chief executive and managing director, to January 31, 2019.
Most brokerage firms, both global and domestic, downgraded the stock and reduced their target prices to reflect the near-term pain
DSP MF sells DHFL shares which fuelled liquidity concerns:
The management of DSP Mutual Fund told CNBC-TV18 that it sold DHFL paper worth Rs 200-300 crore recently in a bid to improve liquidity and reduce overall maturity.
Further, they added that the fund house has some exposure to IL&FS Group and added that they have already marked down holding on marked to market ratio
Rise in bond yields weighed on NBFCs:
The 10-year benchmark bond yield is currently trading above the 8 percent mark. A widening current account deficit as well as selling by foreign institutional investors are exerting upward pressure on bond yields.
The 10-year bond rose to 8.23 percent last week, its highest since Nov 14, 2014 while the rupee fell to a life-time low of 72.99 to the dollar on September 18, said a Reuters report. Rising bond yields will also have negative impact on NBFCs,
Technical Factors:
The Nifty50 which slipped below 100-days moving average and 100-days exponential moving average (EMA) bounced back from lows and formed a strong bearish candle. The index is now trading below crucial short-term moving averages such as 5-13, 20, and 50-EMA.
Nifty recovered by around 300 points from its panic lows but overall bears are keeping their tight grip on the market. The index has also broken its support placed at 11,171 and bulls will only be able to take control if the index reclaims 11333 zones, suggest experts.
“Nifty formed a strong Bearish candle on the daily scale with its biggest intraday fall in last many months. However it recovered by around 300 points from its panic lows but overall bears are keeping their tight grip on the market,”
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