Black Friday: Markets bleed on global selloff, Yes Bank crisis

Mumbai, March 6

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 BSE Sensex settled 893.99 points or 2.32% lower at 37,576.62. Likewise, the 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 RBI placed the lender under a moratorium, capping deposit withdrawals at Rs 50,000 per account for a month and superseding its Board.

The unusual move late 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 ONGC. Bajaj Auto, Maruti and Asian Paints were the only gainers.

During the week, Sensex plunged 720.67 points or 1.88%, while Nifty sank 212.30 points or 1.89%.

According to analysts, investors took the Yes Bank episode very negatively, raising questions on the stability of the overall Indian financial system. — PTI