{"id":38084,"date":"2018-09-21T09:44:19","date_gmt":"2018-09-21T14:44:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=38084"},"modified":"2018-09-21T09:44:19","modified_gmt":"2018-09-21T14:44:19","slug":"volatility-erupts-india-rocked-by-biggest-market-plunge-in-4-years","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=38084","title":{"rendered":"“Volatility Erupts”: India Rocked By Biggest Market Plunge In 4 Years"},"content":{"rendered":"
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“Volatility Erupts”: India Rocked By Biggest Market Plunge In 4 Years<\/span><\/a><\/h3>\n<\/div>\n
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Update<\/strong><\/u>: IL&FS has confirmed it is unable to service its obligations <\/strong>in respect of interest payment of the Non-Convertible Debentures, which was due on September 21, 2018.<\/p>\n

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The fear of contagion has spread across the banking sector and up into India’s sovereign risk, now at 18-month highs…<\/p>\n

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Turmoil broke out in a relatively stable corner of the global market overnight, when “volatility erupted” in India\u2019s stock market on Friday, after plunges in Yes Bank and Dewan Housing Finance set off an exodus from financial shares and slammed the broader stock market. Yes Bank sank to the lowest level since 2016, losing 30% of its value in one day, after India\u2019s banking regulator refused to extend the tenure of the lender\u2019s chief executive officer,” while Dewan tumbled 43% for its steepest loss on record, Bloomberg reported.<\/p>\n

“IL&FS\u2019 problem and Yes Bank\u2019s issues are impacting every financial stock in the market,\u201d<\/strong> A K Prabhakar, head of research at IDBI Capital Market Services Ltd., said by phone. \u201cLeveraged positions are being reduced<\/strong>.”<\/p>\n

As a result, the benchmark S&P BSE Sensex plunged, swinging from a 1% gain to a drop of as much as 3% – its wildest intraday move in more than four years <\/strong>– before closing with a 0.8% loss.<\/p>\n

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Friday\u2019s declines showed that even India is becoming increasingly sensitive to the recent shockwave across the EM space, and that investors remain jittery about Indian financial shares after the recent default<\/a> by Infrastructure Leasing & Financial Services shook confidence in the sector.<\/p>\n

The IL&FS downgrade and default may have nudged investors to avoid potential collateral damage in other financial stocks.<\/p>\n

\u201cDowngrades are a serious possibility\u201d for non-bank financial companies,\u00a0Aneesh Srivastava\u00a0of IDBI Federal Life Insurance Co. said.<\/p><\/blockquote>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“Volatility Erupts”: India Rocked By Biggest Market Plunge In 4 Years Update: IL&FS has confirmed it is unable to service its obligations in respect of interest payment of the Non-Convertible Debentures, which was due on September 21, 2018. The fear of contagion has spread across the banking sector and up into India’s sovereign risk, now […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[422,21787,18334,2773,4318],"class_list":["post-38084","post","type-post","status-publish","format-standard","hentry","category-economics","tag-india","tag-indian-stock-market","tag-market-plunge","tag-volatility","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38084"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38084\/revisions"}],"predecessor-version":[{"id":38085,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38084\/revisions\/38085"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}