Stock takes a deep dive
Shares of Yes Bank came under massive selling pressure on Friday, plunging 56 per cent at close, after the cash-strapped lender was placed under a 30-day moratorium.
On the BSE, the scrip sank 56.04 per cent to close at Rs 16.20 as investors deserted the counter. During the trade, it nosedived 84.93 per cent to Rs 5.55 — its 52-week low.
It plummeted 54.89 per cent to close at Rs 16.60 on the NSE.
The company’s market valuation also dropped Rs 5,266.23 crore to Rs 4,131.77 crore on the BSE.
With Yes Bank, the entire banking pack came crashing. Shares of RBL Bank fell 14 per cent, while SBI, IndusInd Bank, Federal Bank, ICICI Bank and Axis Bank lost in the range of 3-6 per cent.
The broader market was also hit hard, with the BSE benchmark Sensex tanking 893.99 points to close at 37576.62.
A heavy sell-off in global markets on coronavirus concerns took a further toll on risk sentiment, traders said.
After plunging over 1,459 points during the day, the 30-share BSE Sensex settled 893.99 points, or 2.32 per cent, lower at 37576.62. The broader NSE Nifty tanked 279.55 points, or 2.48 per cent, to close at 10989.45.
According to Santosh Meenas, senior analyst at TradingBells, the market took this event very negatively because it raises a question on the stability of the overall Indian financial system.
“The series of accidents in the Indian financial sector sends a poor message to foreign investors. The negative bias is expected to sustain in the near term,” said Gaurav Dua, senior VP, head — capital market strategy & investments, Sharekhan by BNP Paribas.
The rupee resumed its downward journey after a day’s hiatus on Friday, plummeting 46 paise to 73.79 against the dollar as coronavirus-panicked investors kept assessing the deteriorating financial markets.
The domestic currency had hit a day’s low of 74.08 before staging a recovery and settling with a loss of 46 paise at 73.79 a dollar.