INSUBCONTINENT EXCLUSIVE:
Mumbai: It was a bloodbath on Dalal Street on Friday, with benchmark equity indices tumbling to five-month lows and into the correction
The double whammy of a global rout due to coronavirus fears and the Reserve Bank of India’s (RBI) moratorium on private lender YES Bank
spooked investors.
Stock investors lost Rs 3.48 lakh crore wealth in today’s selloff
The 30-share Sensex dropped 2.32 per cent or 894 points lower to 37,577, its lowest close since October 7
The 50-share Nifty closed 2.57 per cent or 289.45 points lower at 10,979.55 points, its lowest close since September 19.
Earlier in the day,
Sensex fell as much as 3.79 per cent or 1,459.52 points to 37,011.09 while Nifty was down 3.77 per cent or 423.60 points to 10,827.40
points.
Foreign institutional investors (FIIs) have been on a selling spree
In the last 14 sessions, they have withdrawn a net Rs 18,343 crore from Indian markets.
Market at a glanceThe bears were in complete control
with five shares declining for every one share that advanced on BSE
A total of 605 companies tested 52-week lows.
Volatility index India VIX jumped 11.70 per cent to 25.96, indicating more choppy times
ahead.
The broader market too declined in line with the benchmark, with BSE Midcap and BSE Smallcap indices declining 2.45 per cent and 1.96
All the sectoral indices on BSE closed deep in the red
BSE Metal index and BSE Bankex were the top losers, shedding 4.40 per cent and 3.46 per cent respectively.
Tata Steel and Jindal Steel
continued to be hammered and were the top losers in the metal index
They fell 6.51 per cent and 5.22 per cent, respectively.
YES Bank shares tumbles 55 per cent
RBL Bank dropped 14.03 per cent, State Bank of India erased 6.19 per cent, while IndusInd Bank shed 5.62 per cent.
As many as 27 of 30
Sensex stocks closed lower, with financials leading the decline
Mortgage lender HDFC contributed the most to index’s losses, as it shed 3.84 per cent
Private lenders ICICI Bank and HDFC Bank dropped 3.67 per cent and 1.46 per cent, respectively
Index heavyweight Reliance Industries fell 3.16 per cent.
Only three Sensex stocks, Bajaj Auto, Maruti Suzuki and Asian Paints, were the
Airline stocks continued their journey southwards as fast-spreading coronavirus forced people to cut down travel plans
SpiceJet and Interglobe Aviation were down 8.93 per cent and 2.79 per cent, respectively.
Amid weak market sentiment, the Rs 206 crore IPO
by Antony Waste Handling Cell was subscribed only 49 per cent by 3:30 pm on Day 3 of the bidding process.
YES Bank: From diamonds to
dust!Shares of YES Bank tumbled as much as 85 per cent today to hit a record low of Rs 5.55 per share after the banking regulator took over
its board and imposed a month-long moratorium
This was its biggest intraday fall ever
RBI also put a cap on cash withdrawal from the bank, saying customers cannot withdraw more than Rs 50,000 over next one month.
The stock
recovered some losses and closed 56.04 per cent lower at Rs 16.20
Over the last one year, the stock has eroded 93 per cent value.
Finance Minister Nirmala Sitharaman said that she was constantly in touch
with the RBI over YES Bank, assuring depositors of a quick resolution for the private lender.Analysts’ views“We continue to maintain our
cautious view on Indian markets and expect volatility to remain high in the near term
The updates on spread of coronavirus cases would be the single biggest factor dictating global markets going forward
On the domestic front, updates on resolution plan for YES Bank along with spread of coronavirus cases would be actively tracked by traders
and investors.”
- Ajit Mishra, VP - Research, Religare Broking"The selloff in India was triggered by a weak global trend due to the
coronavirus outbreak, restricting international travel and trade
Additionally, moratorium enlarged domestic concern over safety of the financial system and the rupee fell past 74 level due to these issues
The bailout is a positive development lowering long-term systemic problems and will increase safety for depositors
Market will be watchful about the final resolution to be offered by RBI - SBI soon."- Vinod Nair, Head of Research at Geojit Financial
ServicesGlobal marketsAsian shares and US stock futures tumbled on Friday as disruptions to business from the coronavirus worsened, stoking
fears of a prolonged global economic slowdown, Reuters reported.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.1 per
cent, while Japan’s Nikkei stock index sank 2.94 per cent
Australian shares were down 2.44 per cent.European shares resumed their slide, with travel stocks bearing the brunt, on fears that the
economic damage of the coronavirus outbreak will be much more severe than expected, a Reuters report said.
The pan-European STOXX 600 fell
1.7 per cent, erasing all the gains for the week.
