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NEW DELHI: Dalal Street witnessed a wild session on Friday as domestic indices registered unusually high volatility in a day marred by heavy selling in banking and financial stocks.
The BSE benchmark Sensex swung 1,500 points before settling the day 279.62 points, or 0.75 per cent lower at 36,841.60.
The NSE barometer Nifty closed the session at 11,143.10 down, 91.25 points or, 0.81 per cent.
Both the indices logged solid gains in opening trade amid firm global cues only to lose steam during the second half of the session.
"Nifty witnessed violent swings and ended half a percent lower in the end.
The rumours of debt crisis in NBFC sector triggered panic selling across the board, especially in banking and housing finance stocks.
Though the benchmark index managed to recoup losses significantly in the latter half, situation remained bleak on broader front," Jayant Manglik, President, Religare Broking said.
Manglik further went on to saythat we usually see such volatile moves prior to the market bottom or top but it's too early to confirm the same.
We believe the coming week would begin in some clarity.
He advised the traders to restrict leveraged positions in the meanwhile and prefer only hedged trades.
Investors, on the other hand, can start accumulating fundamentally sound counters on dips with medium to long term view, Manglik added.
YES Bank was the top loser on both the indices shedding nearly 30 per cent after the RBI asked its managing director and CEO Rana Kapoor to step down after an extended term till January 31, 2019.
In the 30-share index, 13 stocks settled higher while 18 ended lower.
Barring the BSE Oil and BSE Energy, all other indices shut shop in the red.
The BSE Oil Gas index climbed 1.50 per cent with Oil India as the top gainer.
The scrip settled the day 5.24 per cent higher at Rs 218.95.
The oil companies gained as Opec came under pressure to keep the oil prices below the $80 per barrel after US President Donald Trump called on the organisation to "get prices down now!" Trump's comments come after Saudi Arabia said it could tolerate oil prices above $80.
BSE Bankex, BSE Realty and BSE Finance lost up to 3.50 per cent and were the worst performing sectors.
Here are the five factors that led to market fall:Heavy selling in NBFCsThe shares of housing finance companies came under heavy selling pressure amid concerns of rising borrowing costs and lack of clarity on ILFS exposure.
The rumour mill was abuzz that DSP MF was forced to sell commercial papers of DHFL in the secondary market at a higher yield.
The higher yields for the commercial papers is due to tight liquidity into the system, IIFL said on its website.
The shares of Deewan Housing Finance Corporation plunged 59.67 per cent intraday to hit an all-time record low of Rs 246.25.
The scrip recovered a bit to close the day at Rs 351.55, down 42.43 per cent.
Indiabulls Housing Finance settled the day 8.18 per cent lower at Rs 1,061.90.
ILFS Investment Managers (down 16.08 per cent), Crest Ventures (down 14.34 per cent), Coral India Finance Housing (down 11.62 per cent), The Investment Trust Of India (down 10.61 per cent), Palash Securities (down 10.57 per cent) and SREI Infrastructure Finance (down 10.02 per cent) were among other losers.
No Kapoor leads to rout in YES BankOf the 280 point fall in Sensex, YES Bank shares contributed to more than half, 169.34 points to be precise.
The company wiped off Rs 22,000 crore worth in m-cap.
The shares settled the day 28.71 per cent lower at Rs 227.05, after plunging 34 per cent intraday to hit all-time low level of Rs 210.10 per share.
The stock plunged after the RBI asked its managing director and CEO Rana Kapoor to step down after an extended term till January 31, 2019.
Sharp surge in India VIXIndia VIX surged 9.69 per cent to 15.36.
The index suggests a likely rise in volatility in the market over the next 30 days.
Rupee reclaims 72The domestic unit slipped past the 72-level mark on Friday after jumping 53 paise against the US dollar in the early morning deals.
The rupee recovered to 71.75 in intraday trade only to hit day's low of 72.46.
At the time of writing this report, rupee was trading at 72.10 against the greenback.
Oil eyes $80The oil prices rose on Friday ahead of a meeting of Opec and other large crude exporters that will focus on production increases as US sanctions restrict Iranian exports.
Brent crude oil was up 75 cents at $79.45 a barrel by 0955 GMT.
US light crude was up 45 cents at $70.77, Reueters reported.
Brent is close to four-year highs, trading just below $80 a barrel, as investors bet that the Organization of the Petroleum Exporting Countries will be unable to compensate fully for the loss of oil from Iran, Opec's third-biggest producer, the report further added.
