A morning walk down Dalal Street: Bears could tighten grip is Nifty slips below 11,246
Episode 1747, Oct 03, 2019, 01:30 AM
October started off on a muted note with a sharp sell-off followed by some recovery in the last hour of the trading session. The Nifty failed to hold on to 11,500 levels.
The sell-off was triggered due to worries over a crisis in the banking and non-banking financial companies (NBFC) space.
However, the Reserve Bank on Wednesday (October 1) clarified that the Indian banking sector is safe and there is no cause for concern.
Unfortunately, the widespread disruption came at a time when customers were already in a panic due to the recent RBI suspension of the Punjab and Maharashtra Cooperative (PMC) Bank operations.
Thousands of customers of private sector banks such as Yes Bank, HDFC Bank, Kotak Mahindra Bank and IDFC First Bank complained on Tuesday (October 1) that their online transactions failed despite multiple attempts.
Some banks, however, said the disruption was because several customers tried to make online payments for festive sales, said a report.
September auto sales numbers reaffirmed the slowdown in consumer demand. A set of government data on September 30 showed that eight core industries in August recorded a 0.5 percent decline in output of coal, crude oil, natural gas, cement, and electricity.
The overall market capitalisation of BSE-listed firms dropped to Rs 1,45,32,392.02 crore from Rs 1,47,17,456.10 crore on October 1, making investors poorer by Rs 1.85 lakh crore in a single day.