Banking stocks, coronavirus pull Sensex down 894 points
NEWDELHI: Indian stocks fell by at least 2.3% and the rupee weakened to its lowest since 2018 after the central bank seized control of beleaguered YES Bank, intensifying the risk-off mood fuelled by the spread of coronavirus cases in India.
The S&P BSE Sensex closed at 37,576.62, shedding 894 points and leaving investors poorer by ₹3.28 lakh crore. At one point, the index had fallen almost 4% before it clawed back some losses.
The rupee fell as much as 1.1% before trimming losses on what traders said was suspected Reserve Bank of India (RBI) intervention. It closed at 73.79 (provisional) against the US dollar, losing 46 paise on Friday.
“Investors have turned risk averse and the contagion is likely to hit smaller bank and non-bank finance companies,” news agency Bloomberg quoted Abhimanyu
Sofat of IIFL Securities Ltd, as saying. “How soon the RBI finalises the rescue plan is key as persistent operational curbs increase uncertainty.”
The RBI put strict limits on the lender’s operations while a rescue plan is devised.
Under a government-backed proposal, State Bank of India, the nation’s largest lender, will lead a group that will inject new capital into YES Bank.
NEWDELHI: The Sensex plunged 894 points while the Nifty crashed below the key 11,000-mark on Friday as regulatory curbs on Yes Bank triggered a crisis of confidence among domestic investors.
A heavy sell-off in global markets on coronavirus concerns took a further toll on risk sentiment, traders said.
After nosediving over 1,459 points during the day, the 30-share BSE Sensex settled 893.99 points or 2.32% lower at 37,576.62. Likewise, the broader NSE Nifty tanked 279.55 points or 2.48% to close at 10,989.45.
Banking counters wilted under selling pressure, with Yes Bank plummeting over 55%, after the Reserve Bank of India (RBI) placed the lender under a moratorium, capping deposit withdrawals at ₹50,000 per account for a month and superseding its board.
The unusual move late on Thursday evening came hours after finance ministry sources confirmed that State Bank of India (SBI) was directed to bail out the troubled lender, once a Dalal Street darling.
Tata Steel was the top laggard in the Sensex pack, cracking 6.51%, followed by SBI, Indusind Bank, HDFC, ICICI Bank and Oil and Natural Gas Corp (ONGC).
Bajaj Auto, Maruti Suzuki and Asian Paints were the only gainers.
During the week, the Sensex plunged 720.67 points or 1.88%, while Nifty sank 212.30 points or 1.89%.