This September Was Nifty’s Worst Since Lehman Brothers Crisis Of 2008
The NSE Nifty 50 fell to a near two-and-half year low this September, which was marked by sell-offs in the financial sector.
Not since the global financial crisis of 2008 spurred by the collapse of Lehman Brothers has the NSE Nifty 50 Index performed worse in a September.
This Nifty declined 6.4 percent this month—which was marked by intense volatility and sell-offs in the financial sector—compared with the 10 percent decline in Sept. 2008.
That was also the worst monthly performance of the index, since Feb. 2016, when it fell around 7.6 percent.
41 out of the 50 members in the Nifty 50—or nearly 82 percent—posted negative returns. Yes Bank Ltd. and Indiabulls Housing Finance Ltd., were among the top losers.
Despite the Securities and Exchange Board of India and the Reserve Bank of India announcing supportive measures, over a fourth of the NSE 500 stocks hit fresh 52-week lows as of Sept. 28.
Dewan Housing Finance Ltd., which was at the forefront of the sell-off—following the sale of some of its bonds at a higher coupon rate—lost over Rs 10,500 crore in market capitalisation.
Among the other key losers were Anil Dhirubhai Ambani group stocks, including Reliance Capital Ltd. and Reliance Infrastructure Ltd., Infibeam Avenues Ltd., SREI Infrastructure Finance Ltd. and JP Associates Ltd. were the other small-cap stocks to see maximum value erosion.
