Nifty hovers around 8750, Sensex down over 250pts; ONGC falls 3%

Moneycontrol Bureau1:30 pm Funds: Moderation in bond yields is expected to benefit non-banking financial companies (NBFCs) as cost of borrowing is estimated to fall, which in turn may see support from increased demand on the back of good monsoon and the seventh pay commission.

In an interview on CNBC-TV18, V Vaidyanathan of Capital First said that the cost of borrowing is expected to fall by 100 basis points and all NBFCs will see improvement in return on equity (RoE).

In the same interview, Gagan Banga of Indiabulls Housing Finance said that it is important to see how credit growth is channelized going forward. He expects to see a loan book growth of 30 percent by the end of the fiscal.

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The market has made sharp fall as the Sensex is down 280.03 points or 0.9 percent at 28388.19. The Nifty is down 80 points or 0.9 percent at 8751.55. About 1049 shares have advanced, 1473 shares declined, and 179 shares are unchanged.

Reliance, Coal India, TCS, Tata Steel and Lupin were top gainers while ONGC, ICICI Bank, Tata Motors, Bharti Airtel and ITC were losers in the Sensex.

European stocks opened lower on Monday as global markets gear up for a week dominated by US politics and oil market news.

European markets look set to follow their Asian counterparts lower on Monday with investors looking ahead to the first US presidential debate later Monday, as well as an upcoming informal meeting of OPEC producers. Elsewhere, oil will be in focus for markets. OPEC producers are set to informally meet on the sidelines of the International Energy Forum in Algeria, to discuss a possible production freeze deal. The informal meeting will take place between Monday and Wednesday.