Investors poorer by Rs 3.28 lakh cr in market selloff; Sensex plummets over 1,400 points over coronavirus scare

A sharp plunge in the equity market made investors poorer by Rs 3.28 lakh crore on Friday as the BSE barometer Sensex plummeted over 1,400 points in early trade led by massive sell-off in banking, metal and energy stocks

Press Trust of India March 06, 2020 15:25:50 IST
Investors poorer by Rs 3.28 lakh cr in market selloff; Sensex plummets over 1,400 points over coronavirus scare
  • Tracking the plunge in the indices, the market capitalisation of BSE-listed companies dropped by Rs 3.28 lakh cr to Rs 144 lakh cr

  • In the opening trade, the 30-share BSE index plunged 1,459.52 points and was later trading over 900 points lower in afternoon session as sentiment in the market remained muted amid crisis at Yes Bank and rising concerns over the economic strain of coronavirus outbreak

  • Capital-starved Yes Bank was on Thursday placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board

New Delhi: A sharp plunge in the equity market made investors poorer by Rs 3.28 lakh crore on Friday as the BSE barometer Sensex plummeted over 1,400 points in early trade led by massive sell-off in banking, metal and energy stocks.

Tracking the plunge in the indices, the market capitalisation of the BSE-listed companies dropped by Rs 3,28,684.5 crore to Rs 1,44,31,224.41 crore.

In the opening trade, the 30-share BSE benchmark index plunged 1,459.52 points. Later, it closed 893.99 points lower at 37,576.62 as sentiment in the market remained muted amid crisis at Yes Bank and rising concerns over the economic strain of the coronavirus outbreak.

Investors poorer by Rs 328 lakh cr in market selloff Sensex plummets over 1400 points over <span class=coronavirus scare" width="380" height="285" />

Representational image. Reuters.

Capital-starved Yes Bank was on Thursday placed under "moratorium", with the Reserve Bank of India (RBI) capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.

Shares of Yes Bank came under intense selling pressure on Friday and plunged nearly 85 percent during the day after the lender was placed under a 30-day moratorium. It later closed at Rs 16.20, down 56.04 percent.

The entire banking pack also came crashing, with RBL Bank closing 14 percent lower, followed by SBI which dropped 6.19 percent, IndusInd Bank 5.62 percent, ICICI Bank 3.67 percent and Axis Bank 2.90 percent on the BSE.

The BSE bank index dropped 3.46 percent.

From the 30-share pack, 27 constituents closed with losses led by Tata Steel, SBI, IndusInd Bank, HDFC and ICICI Bank which plunged up to 6.5 percent.

HDFC, Reliance Industries (RIL), ICICI Bank, HDFC Bank, SBI and Infosys were the major drag for the 30-share index in terms of index contribution.

RIL, the most-valued firm in terms of market valuation, fell more than 3 percent lower.

All BSE sectoral indices ended in the red, with metal plunging 4.40 percent, followed by bankex, finance, energy, realty, oil and gas, power and industrials.

Investors took the Yes Bank event negatively because it raises a question on the stability of the overall Indian financial system, said Santosh Meenas, senior analyst, TradingBells.

According to him, the market is facing a double-whammy situation where the global markets are struggling on the back of coronavirus worries and Yes Bank fiasco is a setback event on the domestic level.

"The Indian markets witnessed huge sell-off in today's (Friday) session led by weak global cues and Yes Bank debacle which spooked investor sentiments," Ajit Mishra, vice-president (research), Religare Broking, said.

On the BSE, 1,919 scrips declined, while 527 advanced and 128 remained unchanged.

More than 600 stocks hit their one-year-low level on Friday.

Updated Date:

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