Markets snap rising streak as financials stocks slide
Snapping a two-session rising trend, the BSE Sensex tumbled 536 points on Friday as finance and bank stocks skidded after Franklin Templeton MF suddenly closed six debt fund schemes, catching investors off guard
Mumbai: Snapping a two-session rising trend, the BSE Sensex tumbled 536 points on Friday as finance and bank stocks skidded after Franklin Templeton MF suddenly closed six debt fund schemes, catching investors off guard.
A depreciating rupee and negative global cues added to the gloom, brokers said. The 30-share BSE Sensex settled 535.86 points or 1.68 per cent down at 31,327.22, while the NSE Nifty declined 159.50 points, or 1.71 per cent, to 9,154.40.
Franklin Templeton Mutual Fund late on Thursday announced winding up of six debt schemes, with assets under management of over Rs 25,000 crore, due to redemption pressures and lack of liquidity in bond markets amid the Covid-19 crisis.
Many retail investors and high net worth individuals (HNIs) who invested in these schemes as part of their fixed-income asset allocation will be hit as the money will be blocked with no clear timeline for recoveries, experts said.
Bajaj Finance was the top laggard in the Sensex pack, dropping 9.14 per cent, followed by IndusInd Bank (6.58 per cent), Axis Bank (5.96 per cent), ICICI Bank (5.09 per cent) and HDFC (5 per cent).
Reliance Industries, however, capped the losses by rallying 3.34 per cent. Sun Pharma, Hero MotoCorp, L&T, PowerGrid and Bajaj Auto were among the other gainers.
During the week, the Sensex declined 261.50 points or 0.82 per cent, while Nifty fell 112.35 points or 1.21 per cent.