Fears set off by IL&FS still roil markets

The ongoing concerns related to liquidity woes at non-banking financial companies (NBFCs) affected the broader market sentiment on Monday even as both the benchmark indices lost around 1.50% each with the Nifty closing below the psychological 11,000-mark. Interest rate-sensitive sectors such as banking, realty and automobiles bore the maximum brunt with some of the sectoral indices losing in the range of 3-5% each. The overall market breadth was extremely negative with more than 2,100 stocks in the red on the BSE, as against only 500 gainers. Meanwhile, the benchmark Sensex lost 536.58 points or 1.46% to close at 36,305.02. The broader Nifty settled the day at 10,967.40, down 175.70 points or 1.58%. Regulators step in According to market participants, the concerted efforts by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) over the week-end and the statement by Finance Minister on Monday helped assuage the concerns to a large extent. “The Government will take all measures to ensure that adequate liquidity is maintained/provided to the NBFCs, the Mutual funds and the SMEs,” tweeted Arun Jaitley before the markets opened for trading. On Sunday, the RBI and the SEBI jointly said that they are closely monitoring the developments in the financial markets and are ready to act, if required. “It is a volatile scenario with yields hardening, currency depreciating and liquidity tightening,” said Nilesh Shah, managing director, Kotak Mutual Fund.
Source :  https://www.thehindu.com/todays-paper/tp-business/fears-set-off-by-ilfs-still-roil-markets/article25032812.ece

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