StocksMarket.in

A largely volatile day has come to a close, with indices ending the day on a negative note. However, they are off the day’s low points. The Nifty has managed to give up 11,200 in today’s trade. The Sensex has closed over 200 points lower. There was panic selling in the market as non-banking financial companies (NBFCs), led by a huge drop in the shares of Dewan Housing Finance (DHFL), dragged financial stocks. The negativity spilled over to other marquee names such as Indiabulls Housing Finance, Gruh Finance and LIC Housing Finance, among others. What particularly transpired in the trade today was selling activity in the bond markets. DSP Mutual Fund is believed to have sold DHFL paper at 11 percent discount in a bid to make provisions for its exposure to IL&FS’ paper. This triggered a selloff in the DHFL stock, which plunged over 50 percent, halving the share value in just a few hours. There was a knee-jerk reaction among other housing finance companies (HFCs) as well as other NBFC names too. As a result, in the afternoon, the equity market saw a huge plunge, with the Sensex falling over 1,000 points. The Nifty had managed to breach 11,000-mark as well. However, the managements of DHFL and Indiabulls Housing Finance tried to allay fears and said that there was no such instances in the company. The company reiterated this in an analysts’ call that was organized later. Financials were buzzing in trade this morning as Yes