Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

Equity Indices Plunge On Weak Global Cues, Yes Bank Crashes By 55%

The BSE S&P Sensex closed 894 points or 2.32 per cent to 37,577 while the Nifty 50 cracked by 289 points or 2.57 per cent at 10,980.

Photo Credit :

1575888504_ZZwbSI_bse_621x414.jpg

Equity benchmark indices closed nearly 2.5 per cent lower on Friday after the Reserve Bank of India (RBI) placed Yes Bank under a moratorium and took over its board.

The spreading coronavirus (Covid-19) was another reason that weakened market sentiment as the death toll increased to nearly 3,300 globally with infected cases of more than 96,000. Reports said investors lost over Rs 3.7 lakh crore in intraday trading amid Yes Bank crisis and virus-led fears.

The BSE S&P Sensex closed 894 points or 2.32 per cent to 37,577 while the Nifty 50 cracked by 289 points or 2.57 per cent at 10,980.

All sectoral indices at the National Stock Exchange were in the red with Nifty PSU bank down by 5.25 per cent, private bank by 3.81 per cent, financial service by 2.89 per cent and metal by 4.35 per cent.

Among stocks, Yes Bank crumbled by 54.89 per cent to Rs 16.60 per share after the RBI said it is superseding the board of troubled private sector lender with immediate effect.

Former State Bank of India Chief Financial Officer Prashant Kumar has been appointed the administrator. Yes Bank has been grappling with mounting bad loans and has been struggling to raise fresh capital.

As panicked depositors rushed to withdraw cash from Yes Bank ATMs, the stock came tumbling down despite assurances by the Finance Minister, the Chief Economic Advisor and the RBI Governor that their money is safe and a quick resolution will soon be found.

Public sector State Bank of India too dipped by 6.48 per cent to close the day at Rs 269.80 after it said the board of directors has given in-principle approval to explore an investment in Yes Bank. But no negotiations have taken place yet.

The other prominent losers were metal majors Tata Steel, JSW Steel and Hindalco besides IndusInd Bank, Tata Motors and Bharti Infratel.

Meanwhile, Asian shares and US stock futures fell after another Wall Street rout as disruptions to global business from coronavirus beyond China worsened.

Japan's Nikkei stock index slid by 2.72 per cent, Hong Kong's Hang Seng by 2.32 per cent, South Korea's Kospi by 2.16 per cent and Shanghai composite by 1.21 per cent.

The spread of a new coronavirus accelerated in Europe, Britain and North America, prompting investors to re-assess the risks amid volatility in financial markets. 

(ANI)


Tags assigned to this article:
stock market yes bank sensex equity investments