by mydhanush on 17 November 2023, 3 min read
Auto, capital goods, FMCG, pharma and realty up 0.5 percent each, while PSU Bank index shed 2.5 percent and oil & gas index down 1.3 percent. BSE Midcap and Smallcap indices ended in the green.
The Indian equity market amid volatility closed in the red. Sensex shed 187 points at 65794 mark while Nifty was down 33 points at 19731 level.
Among sectors, auto, capital goods, FMCG, pharma and realty up 0.5 percent each, while PSU Bank index shed 2.5 percent and oil & gas index down 1.3 percent. BSE Midcap and Smallcap indices ended in the green.
About 1926 shares advanced, 1654 shares declined, and 138 shares unchanged.
The drag to the market weakness was the banking sector which slipped over 1 percent. The top losers included State Bank of India, IDFC First Bank and Axis Bank which fell over 3 percent each followed by Bandhan Bank, Punjab National Bank, ICICI Bank and Federal Bank which shed 1-2 percent each.
Nifty Financial Services declined 1 percent dragged by SBI Cards, State Bank of India, Cholamandalam Investment and Finance and Axis Bank which fell 3-4 percent each.
These sectors came under pressure after the Reserve Bank of India (RBI) tightened the norms for personal loans and credit cards.
The central bank also increased the risk weight on consumer loans as the unbridled growth of these unsecured loans has been causing a concern.
The RBI has increased the risk weight on the consumer credit exposure of NBFCs and banks by 25 percentage points. Consumer credit attracted a risk weight of 100 percent, which has been revised to 125 percent.
The increase in the risk weights of consumer credit exposure of commercial banks (outstanding as well as new), includes personal loans but excludes housing loans, education loans, vehicle loans and loans secured by gold and gold jewellery, the RBI circular said.
However, buying was seen in auto, FMCG and pharma names.
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