Sensex tanks 894 points on global sell-off; YES Bank plummets over 55 per cent

Closing bell

The market benchmark Sensex plunged 894 points on Friday following an intensifying rout in global stocks on coronavirus concerns, while the regulatory curbs on YES Bank further soured sentiment.

After nosediving over 1,459 points during the day, the 30-share index settled 893.99 points or 2.32 per cent lower at 37,576.62. Likewise, the broader NSE Nifty tanked 289.55 points or 2.57 per cent to close at 10,979.45.

Shares of YES Bank tanked over 55 per cent after the Reserve Bank of India (RBI) placed the lender under a moratorium, capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.

The bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

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.

Tata Steel was the top laggard in the Sensex pack, cracking over 6 per cent, followed by SBI, IndusInd Bank, HDFC, ICICI Bank and ONGC. Bajaj Auto, Maruti and Asian Paints were the only gainers.

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

Further, domestic stocks faced intense heat as the global markets continued their free fall on the back of coronavirus concerns, they said.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo sank over 2 per cent. European benchmarks were also trading significantly lower in their morning sessions. Brent crude oil futures fell 2.54 per cent to $48.72 per barrel. On the currency front, the Indian rupee depreciated 32 paise to 73.24 per US dollar (intra-day). - PTI

Euro, yen gain as dollar's rate advantage evaporates

File Photo

The dollar fell further against the euro and yen on Friday as sliding US Treasury yields eliminated more of its interest rate advantage over other currencies.

Mounting fears over the effects of the coronavirus have driven a drop in expectations for US rates. Markets now bet the Federal Reserve will have to cut rates by 50 basis points for a second time this month.

The resulting collapse in Treasury yields has ended one of the most popular carry trades globally - borrowing at negative rates in the euro and yen to buy US assets. Click here to read in full the global forex report .

Oil drops on demand doubts, fears that output cuts have not yet been finalised

US crude stocks rise, gasoline inventories drop. File Photo

Oil slid 1 per cent on Friday as worries about global oil demand and economic growth slowdown caused by the coronavirus outbreak were heightened by concern over non-OPEC crude producers not yet having agreed to cut output further to support prices.

Brent crude fell 49 cents, or 0.98 per cent, to $49.50 per barrel by 0735 GMT, while US West Texas Intermediate (WTI) was down 46 cents, or 1 per cent, at $45.44 per barrel. Click here to read in full the oil markets report.

Asian stocks battered by Treasury rally as virus sparks shake out

Asian shares and US stock futures tumbled on Friday as disruptions to business from the coronavirus worsened, stoking fears of a prolonged global economic slowdown.

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. Click here to read in full the Asian markets report .

Nifty call: Go long above 10,950

YES Bank share hits lows

Shares of YES Bank came under massive selling pressure as the session progressed on Friday and plunged nearly 85 per cent after the cash-strapped lender was placed under a 30-day moratorium.

On the BSE, the scrip sank 84.93 per cent to Rs 5.55 -- its 52-week low -- as investors deserted the counter. On the NSE it plummeted 84.64 per cent to Rs 5.65 -- its one-year low.

The company’s market valuation also dropped Rs 5,432.02 crore to Rs 3,927.73 crore on the BSE. Click here to read the full report.

Sensex, Nifty down over 2 per cent

The benchmark indices, Sensex and Nifty, which began the session on a weak note, continued to trade in the red in the afternoon session on Friday. The Sensex was down 944 points or 2.46 per cent at 37,525, while the Nifty was at 10,970, down 299 points or 2.65 per cent lower.

All the stocks on the 30-share benchmark were in the red. IndusInd Bank was down over 7 per cent, while Tata Steel was down 6.4 per cent, SBI 6 per cent, Bajaj Finance 2.89 per cent and HDFC 3.75 per cent.

The metal index on the BSE was down over 4 per cent, while the realty, banking and energy indices were down over 3 per cent.

What should YES Bank customers and investors do now?

How YES Bank led to collateral damage on Sensex, Nifty

Yes Bank scrips fall over 20% in early trade. File Photo

The freeze imposed on YES Bank has led to the stock markets reeling under massive margin pressure, experts said. News of the freeze on YES Bank came late in the evening of Thursday. On Friday morning, the NSE issued a notice that brokers who had placed FDs of YES Bank and other instruments as collateral for availing positions in the stock market will have to bring in additional funds of up to 100 per cent.

“The existing benefits provided to members towards bank guarantees and FDs issued by YES Bank in favour of NSE shall be reduced by 50 per cent of collateral value provided beginning March 9 and remaining 50 per cent by March 11,” said the compliance officer of a large broking house.  Click here to read in full how YES Bank led to collateral damage on Sensex, Nifty.

Exposure to YES Bank may be cause for worry for MF investors

After debt fund investments, debt and equity investments in YES Bank have now come to threaten mutual fund investors. Click here to read more .

YES Bank shares nosedive 25 per cent; other banks plunge too

Analysts said the move will be credit negative for Yes Bank. File Photo

Shares of YES Bank on Friday plunged 25 per cent after the company was placed under a moratorium.

The scrip suffered a massive beating and sank 24.96 per cent to Rs 27.65 -- its 52-week low -- on the BSE. On the NSE, it plummeted 20 per cent to Rs 29.45.

The entire banking pack also came crashing in opening trade, with RBL Bank trading 15 per cent lower, followed by IndusInd Bank which dropped 11 per cent, SBI 7 per cent and Axis Bank 4 per cent on the BSE.

The BSE bankex was trading lower by nearly 3 per cent.

The broader market was also hit hard, with the BSE benchmark tanking 1,459.52 points.

In a rare move, capital-starved YES Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.

The announcement came late Thursday evening.

YES Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

The regulatory actions, undertaken by the RBI and the government, came hours after Finance Ministry sources confirmed that SBI was directed to bail out the troubled lender.

Shares of YES Bank had zoomed 27 per cent on Thursday on reports of the bail-out.

Rupee slides 65 paise against $ to 73.99 on growth concerns

The rupee plunged 65 paise to 73.99 against the US currency in opening trade on Friday amid continued forex outflows following weak global growth concerns.

Stocks plummeting 3 per cent in early session also hit the domestic currency. Investor sentiment took a hit due to deep losses in global equities on coronavirus fears. RBI’s decision to place Yes Bank under a moratorium and take over its board also weighed on market mood.

The rupee had closed with gains of 6 paise at 73.33 against the dollar on Thursday. Click here to read the rupee report .

What to Watch:Default of principal, interest may hurt HCC

Shares of Hindustan Construction Company may come under pressure, as it defaulted on principal and interest amounts. In a disclosure, HCC said that it has defaulted ₹305.06 crore towards principal, ₹122.34 crore interest dues and ₹194.86 crore under other heads.

Total outstanding borrowings with banks, financial institutions and other lenders stand at ₹3,182.74 crore, it further said. Shareholders will closely monitor further developments, especially of lenders.

Will Agra project lift Lemon Tree Hotels?

Lemon Tree Hotels has signed a licence agreement for a 62-room upcoming hotel at Agra (bypass road) under its brand name Lemon Tree Hotels. The hotel project, by Hotel Bhawna Palace, is expected to open by March 2021, it said in a notice to the bourses.

Carnation Hotels Pvt Ltd, a subsidiary and the hotel management arm of the company, will be operating and marketing the hotel, which will have a multi-cuisine restaurant, a thriving bar and equipped banquet spaces.

Nod for liver drug may boost Cadila Healthcare

Cadila Healthcare on Thursday announced that the Drug Controller General of India has approved its New Drug Application for Saioglitazar for the treatment of Non-Cirrhotic Non-Alcoholic Steato Hepatitis (NASH) in India.

NASH is a progressive disease of the liver, which starts with fat accumulation in the liver known as Non-Alcohoiic Fatty Liver Disease (NAFLD). This condition could progress to cirrhosis and liver failure. Shareholders will closely monitor further progress.

Daily rupee call: Stay on the sidelines as higher volatility is expected today

The rupee (INR), after opening lower yesterday, attempted to rally against the dollar (USD). But it faced downward pressure as it advanced and ended Thursday’s session at 73.31 versus its previous close of 73.22.

The domestic currency is the weakest Asian currency for the week, having lost 1.58 per cent. Its year-to-date loss against the dollar stands at about 2.7 per cent as of yesterday. Click here to read the daily rupee call

Sensex, Nifty plunge more than 2 per cent in early trade

The Sensex and Nifty were trading on the back foot in early session on Friday.

The Sensex dropped 971 points or 2.52 per cent to 37,448, while the Nifty dropped 330 points or 2.93 per cent to 10,938.

According to a PTI report, Sensex plummeted over 1,400 points in opening session led by a massive sell-off in global stocks as volatility peaked amid rising concerns over the economic strain of the coronavirus outbreak.

The rupee too depreciated 53 paise to 73.86 against the US dollar in morning session.

Incessant foreign fund outflows also spooked market participants, traders said.

After sinking 1,459.52 points in early trade, the 30-share index was down 1052.33 points, or 2.74 per cent, at 37,418.28, and the NSE Nifty plunged 318.30 points, or 2.82 per cent, to 10,950.70.

In the previous session, the 30-share BSE barometer settled 61.13 points or 0.16 per cent higher at 38,470.61, and the Nifty advanced 18 points or 0.16 per cent to finish at 11,269.

On a net basis, foreign institutional investors (FPIs) sold equities worth Rs 2,476.75 crore, while domestic institutional investors bought shares worth Rs 2,510.89 crore on Thursday, data available with stock exchanges showed.

Shares of YES Bank tanked 25 per cent after the capital-starved lender was placed under a moratorium, with the Reserve Bank of India capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.

YES Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

The rare move, made by the RBI and the government, came hours after Finance Ministry sources confirmed that State Bank of India was directed to bail out the troubled lender.

SBI cracked over 6 per cent, and was among the top losers on Sensex. IndusInd Bank, Tata Steel, Bajaj Finance, Axis Bank and Ultratech Cement were also in the red.

According to traders, investor sentiment was hit by intense selling in global equities as heightened volatility on concerns over the economic impact of coronavirus on world economies plagued markets.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo cracked up to 3 per cent.

Stock exchanges in the US too ended up to 3 per cent lower on Thursday.

Global oil benchmark Brent crude futures cracked 1.04 per cent to $49.47 per barrel.

Today's Pick: FDC (₹243): Buy

Investors with a short-term horizon can buy the stock of FDC at current levels. The stock surged 6.7 per cent accompanied by extraordinary volume on Thursday and managed to close above a key immediate resistance level of ₹239.

Since taking support at ₹152 in October 2019, the stock has been in an intermediate-term uptrend. While trending up, the stock had decisively breached a key long-term resistance at around ₹205 in late December and continued to trend upwards. But, it witnessed a corrective decline after registering a new 52-week high at ₹269 in late February this year. Click here to read Today's Pick on FDC ,

Day Trading Guide for Friday, March 6, 2020

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹1151 • HDFC Bank

₹754 • Infosys

₹187 • ITC

₹92 • ONGC

₹1311 • Reliance Ind.

₹288 • SBI

₹2124 • TCS

11255 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

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