Shares of non-banking financial companies (NBFCs) and banks fell on Tuesday, extending losses from last few sessions, as fears over liquidity crunch in the sector weighed on sentiment.

Share Market Live

NSE

Nifty Fin Service, a key barometer to spot the trend in NBFC space, has lost nearly 10 percent so far this month.

As many as 39 stocks in the non-banking financial space have fallen by up to 53 percent in September, including the likes of Dewan Housing Finance ltd (down 53 percent), Reliance Capital (down by over 32 percent), L&T Finance (lower by over 29 percent), Indiabulls Housing Finance (dipping by 26.5 percent).

Others like Ujjivan, Edelweiss Finance, Reliance Home, Manappuram Finance, GIC Housing, Can Fin Home, JM Financial, IFCI, Capital First, have fallen between 22.30 percent and 20.38 percent this month.

The plunge in NBFC stocks started after reports emerged that Infrastructure Leasing and Financial Services Ltd (IL&FS) and its units had defaulted on repayments, and accelerated after rumours thatDSP Mutual Fund had sold commercial papers issued by DHFL in the secondary market at a discount.

DHFL shares plunged over 50 percent intra-day, hitting a 52-week low of Rs 274.75 while Indiabulls Housing Finance stock was at Rs 911, down 7.4 percent.

Also, catch all the action and updates in our Market Live blog

.