Markets rocked by crash in financial stocks, Sensex swings 1,500 pts

Financial stocks crash on liquidity crunch, IL&FS overhang; Scores of stocks see wild gyrations

The stock markets on Friday witnessed one of the most volatile days this decade as the benchmark Sensex swung nearly 1,500 points, or 4 per cent, in intra-day trade. The source of volatility was a crash in stocks of non-banking financial companies (NBFCs), led by Dewan Housing Finance Corporation (DHFL) and Indiabulls Housing Finance. 

A sharp fall in shares of Yes Bank following the Reserve Bank of India’s (RBI’s) directive to its chief, Rana Kapoor, to step down in January also weighed on market sentiment. Shares of Yes Bank, which ended 29 per cent lower, accounted for 60 per cent