RIL, banking stocks drag Sensex by 667 points

Our Bureau. Mumbai | Updated on August 03, 2020 Published on August 03, 2020

Banking sector weighed down by moratorium ‘fears’

A fall in banking stocks and Reliance Industries Ltd (RIL), the heavy weight index stock, pulled down stock markets in India on Monday. Nifty fell 181 points or 1.57 per cent to close at 18,891.

The Sensex fell by 1.77 per cent, or 667 points, to close at 36,939. Bank Nifty Index fell 2.62 per cent, or 567 points, to close at 21,072.

Stock markets fell on Monday despite buoyancy in most global bourses. Markets in Europe were all up 1 per cent or more and even US index futures were trading higher than Friday’s close.

The fall in Nifty and Sensex was mainly attributed to the drop in RIL share price, which was down 2.83 per cent at ₹2,008.

Banking stocks have remained weak the past few days on the back of fears that the Covid-related moratorium on loan repayments would lead to higher non-performing assets.

Data showed that foreign portfolio investors (FPIs) bought shares worth ₹7,818 crore in the market. Yet, there was nothing to rejoice for the markets as FPIs just bought shares of Bandhan Bank, where promoters offloaded their stake worth more than ₹10,000 crore.

In fact, if one removes the FPI buying in Bandhan Bank, they actually sold stocks worth ₹5,081 crore in the open market, experts say based on the data from stock exchanges.

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Published on August 03, 2020
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