Bandhan battered
Shares of Bandhan Bank crashed 20 per cent on Monday as the Reserve Bank restrained the company from opening new branches and also ordered the freezing of remuneration of its CEO Chandra Shekhar Ghosh for not meeting the licensing conditions.
The stock after a weak opening further tumbled 20 per cent to close at Rs 451.20 — its 52-week low — on the BSE.
On the NSE, the shares tanked 20 per cent to hit a one-year low of Rs 452.20.
The Telegraph
Equity benchmarks snapped their three-day losing streak on Monday as the RBI announced measures to shore up liquidity amid the government pressing for a change of management at crisis-hit IL&FS.
The 30-share BSE Sensex soared 299 points in see-saw trade to close at 36526.14, while the NSE Nifty jumped 77.85 points to reclaim the 11000-mark.
Positive manufacturing PMI data for September and healthy auto sales numbers also reassured investors, brokers said.
Yes Bank was the top gainer in the Sensex pack, spurting 9.86 per cent, after the mid-sized lender said it was fully geared up to find a successor for its MD and CEO Rana Kapoor, whose tenure was curtailed by the RBI last month.
Shares of the IL&FS group companies surged up to 20 per cent on Monday after the government moved the National Company Law Tribunal for a change of management at the crisis-hit company.
Debt defaults by certain group entities of diversified IL&FS have triggered fears of a liquidity crisis in the financial markets and the RBI has been taking steps to improve the overall cash situation.
The Reserve Bank on Monday announced that it will inject Rs 36,000 crore liquidity into the system through the purchase of government bonds in October to meet the festival season demand for funds.
The Sensex opened on a strong note at 36274.25 but soon declined over concerns surrounding the NBFC space and the commercial paper market.
However, it recovered in afternoon trade to touch a high of 36616.64, before finally closing higher by 299 points, or 0.83 per cent, at 36526.14.
The NSE Nifty gained 77.85 points, or 0.71 per cent, to finish at 11008.30. Intra-day, it shuttled between 10821.55 and 11035.65.
