Nifty ends lower as National Spot Exchange default worries investors

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 Nifty ends lower as National Spot Exchange default worries
Markets which were trading sharply higher in morning trades, gave up gains as reports surfaced that the National Spot Exchange Ltd (NSEL) may default after suspending trading of all contracts, other then e-series.

The NSEL, is a commodity exchange (not to be confused with NSE) has blamed the government for the structural changes in precipitating the present crisis.

The Nifty ended the day lower by 14 points, as reports that several NSE/BSE brokers also offering services on the NSEL could be affected and the present crisis may find its way to the stock exchanges. Financial Technologies, which owns NSEL lost 65% in trade.

Among the stocks that gained despite the worries were Hindustan Unilever, which spiked  3per cent, after being hammered in the last few days. Joining HUL higher were HDFC, Jindal Steel and HDFC Bank.

Stocks that lost heavy ground were those from the oil and gas space including Reliance, ONGC and BPCL. Shares in India's largest real estate developer, DLF, dropped a whopping 7 per cent in trade.

Private sector banking names were steady after the sharp fall with ICICI Bank, IndusInd Bank and Yes Bank ending the day steady.

PSU Banking stocks were once again at the receiving end with most of them ending the day with sharp cuts. Notable losers from the space were Andhra Bank (down 8%), Oriental Bank (down 7%), and Bank of Baroda (down 6%).

Meanwhile, markets in Europe were trading higher, while most of Asia ended the day with gains, while Europe was trading with substantial gains of more then 1 per cent.

Read more about: hdfc bank, sensex, nifty
Story first published: Thursday, August 1, 2013, 14:51 [IST]
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