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After Market: Voda Idea, PSU banks bleed; 23 stocks cross 50-EMAs

YES Bank was the most active stock on NSE in terms of turnover.

, ETMarkets.com|
Dec 06, 2019, 05.26 PM IST
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Most bank stocks ended with deep cuts a day after RBI kept its policy rates unchanged.
YES Bank failed to see a change of fortunes as the stock plunged nearly 10 per cent in Friday’s day, after ratings agency Moody’s downgraded its credit profile. Vodafone Idea closed 5 per cent lower after Kumar Mangalam Birla said the company may have to shut shop if the government doesn’t come to its aid.

Most bank stocks ended with deep cuts a day after RBI kept its policy rates unchanged, going against all expectations. Nifty PSU Bank index dived over 4 per cent.

BSE flagship Sensex shed 334 points to close at 40,445 while its NSE counterpart Nifty ebbed 96.90 points to 11,921. Broader market indices underperformed and bled through the day.

“Clouds over economic growth outlook and premium valuation influenced investors to stay away from rate-sensitive stocks. While a rise in 10-year yields due to a spike in inflation, a potential slippage by the government on fiscal discipline may result in near-term consolidation of the market,” said Vinod Nair, Head of Research Geojit Financial Services.

Here is a lowdown of the movers and shakers of Friday’s session on Dalal Street:

Moody’s sends YES Bank reeling
Shares of YES Bank plunged 9.82 per cent to Rs 56 a day after Moody's Investors Service downgraded the private lender’s credit rating, citing stressed assets and low loss-absorbing buffers against those assets. It also assigned a 'negative outlook' to the company.

Voda Idea to shut shop?
Shares of Vodafone Idea ended 5.34 per cent lower at Rs 6.92 after chairman Kumar Mangalam Birla said the telco will shut shop if there is no government relief. The government has already disbanded the panel that was meant to ponder over possible relief to the telecom sector.

SBI shares drop 5%
State Bank of India sank 5.40 per cent to Rs 318 on BSE. On Wednesday, the bank had announced plans to cut its stake in UTI AMC to 10 per cent from 18.25 per cent at present.

PSU banks bleed
PSU bank shares had a bad day as all of them ended the day with a heavy cut. The Nifty PSU Bank index fell 4.39 per cent to 2,460. Central Bank of India was the biggest loser, down 6.67 per cent to Rs 19.60. Union Bank of India (down 5.93 per cent), Bank of Baroda (5.57 per cent) and SBI were other big losers on the index.

Broader indices tank
Broader market indices tanked underperforming their headline peers. Nifty Midcap index dived 1.46 per cent to 16,732 while Nifty Smallcap index fell 0.95 per cent to 5,697. Nifty500 index ended the day 0.90 per cent lower at 9,669.

HDFC biggest drags
Shares of banks and financials pulled Sensex lower, with HDFC bleeding 102 points in the30-share Sensex. SBI with a 60-point cut was the next biggest negative contributor. Excluding Kotak Mahindra Bank and HDFC Bank which ended in the green, the entire banking and financial bloc on the Sensex bled 253 points.

Most active stocks
YES Bank was the most active stock on NSE in terms of turnover. It was followed by SBI, ICICI Bank, Indiabulls Housing Finance and Reliance Industries. In terms of volume, Vodafone Idea topped the charts. YES Bank, Dish TV, Reliance Communication and SBI completed the top five list.

23 stocks cross 50-EMAs
As many as 23 stocks have given bullish signals in an otherwise falling market as they crossed their 50-day exponential moving averages. They included MMTC, Colgate Palmolive, Malu Paper Mills, Rajshree Sugars, L&T Technology Services, SE Power, Jindal Poly Firms and OnMobile Global, among others.
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