Coronavirus concerns and Yes Bank crisis spark fear among investors.
Market benchmark Sensex plunged 894 points on Friday following intensifying rout in global stocks on coronavirus concerns and RBI curbs on Yes Bank.
After nosediving over 1,459 points during the day, the 30-share index settled 893.99 points or 2.32% lower at 37,576.62. The broader NSE Nifty settled at 10,989.45 after losing 279.55 points or 2.48%.
Shares of Yes Bank tanked over 55% after the Reserve Bank of India (RBI) on Thursday placed the private lender under a moratorium, capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.
Tata Steel, SBI, IndusInd Bank, HDFC, ICICI Bank and ONGC were the top losers during the trade on Friday.
Bajaj Auto, Maruti and Asian Paints were the only gainers.
Analysts said the shock selling in the stock market came as investors took the Yes Bank episode very negatively, which led the fall in banking stocks.
The Yes Bank crisis has raised the questions on the stability of the overall Indian financial system, creating a downfall in the banking shares.
Meanwhile, the Indian rupee depreciated 32 paise to 73.24 per US dollar (intra-day).
Commenting on this, Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services, said, “Rupee depreciated sharply by more than 2.5% to hit a 17-months low this week as investor sentiments remained fragile amid escalating worries over the impact of rapidly spreading coronavirus globally."
"However, fall was cushioned due to possible intervention of RBI. Going forward market participates will have a close eye on any possible intervention/update by RBI or Government. On upside crucial resistance lies at 74.47(all-time low) and if Rupee consistently trades above 74.47 then 75.0-75.50 is expected. However, these levels are highly unsustainable and are more likely to witness a reversal thereafter. But, any updates about rise in cases on coronavirus will lead to sharp depreciation in Rupee,” he added.
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