Posted in India
March 6, 2020

Stock market tumbles as Sensex drops over 900 points

More than 2 percent of stock markets tumbled on Friday as the double whammy of rapidly spreading coronavirus and Yes Bank crisis spoke to the investment community. The lethal Covid-19 virus, which has infected more than 95,000 people across all continents in around 60 countries except Antarctica, is raising fears of a recession in the global economy.

RBI’s decision to seize control of the beleaguered Yes Bank and potential financial system repercussions also dented sentiment on Dalal Street. The BSE Sensex ended at 37,576, down 894 points, or 2.3%, and the NSE Nifty finished at 10,989, down 280 points, or 2.5%. This represents the lowest levels in more than five months.

The larger markets have succumbed to panic sales, with the BSE Midcap and Smallcap indices down 2.3% and 1.9% respectively. In early trade, the segments of midcap and smallcap had declined 4.16 percent and 3.25 percent respectively.

The S&P BSE Sensex index had nosedived as much as 1,459.52 points to touch 37,011.09 on the downside in the first few minutes of trading and broader NSE Nifty benchmark fell to a 10,827.40 low, down 441.60 points from the previous close. However, the markets trimmed part of their losses against trade closure.

Yes Bank shares plummeted 56 percent to Rs 16 a day after the Reserve Bank of India (RBI) suspended the board of private-sector lenders for a period of 30 days’ because of serious deterioration in the Bank’s financial position’ and imposed a withdrawal limit of Rs 50,000 on its account holders, with few exceptions, until April 3. Earlier in the day, the shares had reached a Rs 5.5 low.

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