The broader Nifty50 settled just above the psychological level of 11,900 at 11,914 mark, up a modest 8 points, or 0.07 per cent. Among sectoral indices, public sector banks, metals and IT stocks lost ground.
The S&P BSE Sensex touched an intra-day low of 39,461 levels while the Nifty50 drifted to 11,817 levels during the day before staging a limited recovery. The broader market, S&P BSE Mid-Cap index settled 49 points lower at 14,873 levels, while the S&P BSE Small-Cap index lost 72 points to close at 14,476 levels,
taking deeper cuts than benchmark indices.
Bad loan risk from related firms likely: UBS
A recent report by global research and brokerage house, UBS, suggests that the next level of risk could appear from leveraged corporates' inter-related companies (their network).
"We believe the market is not pricing in the structural opportunity available to ICICI Bank, Axis Bank and SBI due to near-term issues. NPL risk for YES Bank and IndusInd does not seem to be fully priced in," the report said. YES Bank and IndusInd Bank were among the top losers in the Nifty Bank index on Thursday, slipping nearly 13.5 per cent and 5 per cent, respectively by close.
UBS, which expects the NPL cycle to be extended due to the emergence of new stressed accounts, studied 5,600 companies and their links to around 200 large corporates with an aggregate debt of about $250 billion. READ MORE
Shares of Jet Airways (India) slipped 15 per cent to Rs 93 apiece during the morning deals on Thursday to hit a fresh lifetime low on the BSE and National Stock Exchange (NSE). The fall comes on the back of the exchanges' decision to switch deals on the stock to ‘trade-to-trade’ segment with effect from June 28, 2019 till further notice.
Shares of Indiabulls Group companies soared up to 16 per cent from their respective intra-day lows on the BSE on Thursday after Abhay Yadav, the petitioner who had filed a public interest litigation (PIL) against the housing finance major for siphoning off funds worth Rs 98,000 crore, withdrew the writ petition in the Supreme Court.
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Shares in Asia Pacific were mixed on Thursday on an intractable US-China trade war and oil prices that soared during the afternoon session.
Hong Kong’s Hang Seng index closed fractionally lower at 27,295 while Japan’s Nikkei 225 slipped 0.46% to close at 21,032. South Korea’s Kospi shed 0.27% to close at 2,103.