Indian Indices Trade Marginally Higher; DHFL Down Over 9%

Share markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the realty sectorcapital goods sector and energy sector witnessing maximum buying interest, while FMCG stocks are trading in red.

The BSE Sensex is trading up by 109 points (up 0.3%), while the NSE Nifty is trading up by 17 points (up 0.1%).

The BSE Mid Cap index is trading down by 0.6%, while the BSE Small Cap index is trading up by 0.1%.

In the news from finance sectorDHFL share price is in focus today.

Shares of Dewan Housing Finance Corporation Limited (DHFL) witnessed selling pressure and plunged as much as 18% in morning trades today after the housing finance company said it has decided to temporarily stop taking fresh deposits and hold premature withdrawals from existing deposit schemes as it tries to manage its tight liquidity position.

The above move comes after the recent downgrade of the credit rating of DHFL's fixed deposit (FD) programme.

DHFL, in a notice sent out to distributors and financial planners, said that in view of the recent revision in the credit rating of our fixed deposit program, acceptance of all fresh deposits, as well as renewals, has been put on hold with immediate effect. However, the company added, premature withdrawals would be allowed only in cases of medical or financial emergency if backed by proper documentation.

Note that DHFL's fixed deposit programme was downgraded by Brickwork Ratings India Ltd on Friday to BBB+ from AA- and had been put on credit watch with negative implications due to the limited build-up of liquidity. In its rating release, Brickwork Ratings pegged the size of DHFL's fixed deposit programme at Rs 120 billion.

In other news, as per a leading financial daily, the Employees' Provident Fund Organisation (EPFO) is planning to seek early re-payment of some of its investments from troubled firms in the sector, such as DHFL.

1 2
View single page >> |

To know what's moving the Indian stock markets today, check out the most recent 

more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.