Investors lost Rs 3.28 lakh crore in market wealth today after Sensex and Nifty closed over 2% lower on coronavirus concerns and RBI curbs on YES Bank. Market capitalisation on BSE fell to Rs 144.31 lakh crore today compared to yesterday's close of Rs 147.59 lakh crore amid intensifying rout in global stocks on coronavirus concerns with RBI's regulatory curbs on YES Bank further weakening sentiment.
Sensex which crashed over 1,459 points during the day finally settled 893.99 points or 2.32 per cent lower at 37,576.6. Similarly, Nifty tanked 279.55 points or 2.48 per cent to close at 10,989.45.
Within minutes of opening today, Sensex tanked 1,459 points as banking stocks crashed led by YES Bank whose management was taken over by RBI and limit of Rs 50,000 withdrawal placed till April 3.
That led to erosion of nearly Rs 5 lakh crore in investor wealth intra day. Indian rupee also fell sharply today, breaching the 74 levels against the US dollar.
YES Bank share price fell 85% to its all-time low of Rs 5.55 on BSE today.
Later, the stock tripled from its intra day low amid reports that RBI governor Shaktikanta Das met finance ministry officials to resolve YES Bank crisis. Das assured of an early solution and swift action within one month.
The assurance from the government helped the stock erase losses and close 56% lower at Rs 16.20 on BSE. BSE bankex was the top loser closing 1,146 points lower at 31,988 taking into account the hit YES Bank took after takeover from RBI.
All 19 BSE sectoral indices closed in the red.Tata Steel was the top loser on Sensex down 6.51% to Rs 351.20 amid global economic uncertainty over coronavirus fears.
SBI (6.19%) , IndusInd Bank (5.62 %) , HDFC (3.90%) and ICICI Bank (3.67%) were among other Sensex losers.
Bajaj Auto (1.20%), Maruti (1.03%) and Asian Paints (0.13%) were the top Sensex gainers
According to analysts, investors took YES Bank episode very negatively, raising questions on the stability of the overall Indian financial system.
Deepak Jasani, Head, Retail Research at HDFC Securities said, "Statements from corporate chieftains helped bring some stability to the free fall in the stock price of YES Bank. But the collateral damage to the broader market expecting second and third degree impact of this event could not be prevented. Market participants now remember the IL&FS issue when a similar panic subsisted for some days and progress on recovery of money from IL&FS has been very slow so far.
However, YES Bank being a scheduled commercial Bank, the situation of depositors is much stronger but the same cannot be said about the shareholders. The market sentiments could revive only if global markets settle down and fears of global slowdown recede soon."
Further, domestic market faced intense heat as global markets continued their free fall on the back of coronavirus concerns, analysts said.
European benchmarks were trading significantly lower in their morning sessions. On the currency front, the Indian rupee depreciated 32 paise to 73.24 per US dollar (intra-day).
World shares slipped Friday after a sharp drop on Wall Street, as pessimism prevailed over hopes for central bank action to counter the virus outbreak. Bourses in Shanghai, Hong Kong, Seoul and Tokyo sank over 2 per cent.
Japan's benchmark Nikkei dived 2.7% to finish at 20,749.75. Australia's S&P/ASX 200 lost 2.8% to 6,216.20. South Korea's Kospi dropped 2.2% to 2,040.22. Hong Kong's Hang Seng declined 2.3% to 26,146.67, while the Shanghai Composite skidded 1.2% to 3,034.51. Shares also dropped in Taiwan and Southeast Asia.
Brent crude oil futures fell 2.54 per cent to $48.72 per barrel. On Wall Street on Thursday, major indexes lost roughly 3.5%, nearly wiping out the rally from a day before that was fueled by hopes authorities around the world will move to cushion the economic fallout. Such swings look likely to continue as long as the outbreaks continue to expand.