Home Business Sensex, Nifty decline on selloff in banking, financial stocks

Sensex, Nifty decline on selloff in banking, financial stocks



| Photo Credit: Arunangsu Roy Chowdhury

Equity benchmark indices Sensex and Nifty declined on November 17, dragged down by heavy selling pressure in banking, financial and energy stocks amid mixed cues from global markets.

Shares of bank and NBFC firms fell after the Reserve Bank tightened norms for consumer credit as it asked them to assign a higher risk weight for unsecured personal loans, a move aimed at making the lenders more cautious about such advances.

The 30-share BSE Sensex declined 187.75 points or 0.28% to settle at 65,794.73. During the day, it fell 342.74 points or 0.51% to 65,639.74.

The Nifty skidded 33.40 points or 0.17% to 19,731.80.

Among the Sensex firms, State Bank of India fell 3.64%, followed by Axis Bank (3.03%).

Bajaj Finance, ICICI Bank, Bajaj Finserv, IndusInd Bank, Infosys, Kotak Mahindra Bank, Wipro, and Reliance Industries were among the other laggards.

On the other hand, Larsen & Toubro, Hindustan Unilever, Power Grid, Asian Paints, Nestle and Mahindra & Mahindra were the major gainers.

In Asian markets, Seoul and Hong Kong settled lower, while Tokyo and Shanghai ended in the green.

European markets were trading with gains. The U.S. markets ended on a mixed note on Thursday.

“The RBI’s action to raise risk weights for unsecured loans dampened banking stocks and caused a temporary disruption in the broader indices’ resurgence. Despite this, a positive undercurrent prevails, buoyed by the conclusion of a robust earnings season.

“Investors are awaiting eurozone inflation data later today. Sharp drop in oil prices and the moderation of US yield will help the market to sustain buoyancy in the short-term,” said Vinod Nair, Head of Research at Geojit Financial Services.

Global oil benchmark Brent crude climbed 0.77% to $78.02 a barrel.

Foreign Institutional Investors (FIIs) were buyers on Thursday as they bought equities worth ₹957.25 crore, according to exchange data.

The BSE benchmark climbed 306.55 points or 0.47% to settle at 65,982.48 on Thursday. The Nifty gained 89.75 points or 0.46% to 19,765.20.

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