Don’t miss the latest developments in business and finance.

Bloodbath on D-Street: Sensex nosedives 2200 pts

Image
Capital Market
Last Updated : Mar 09 2020 | 1:50 PM IST
The market extended slump in afternoon trade. At 13:25 IST, the barometer index, the S&P BSE Sensex, tanked 2235.81 points or 5.95% at 35,340.81. The Nifty 50 index slumped 625.60 points or 5.69% at 10,363.85.

The Nifty is down 16.62% from its record high of 12,430.50 hit on 20 January 2020.

The number of coronavirus cases in India rose to 43 on Monday with four people, including a three-year-old child in Kerala who had returned from Italy, testing positive for the disease, Health Ministry officials reportedly said.

Global stock markets witnessed a selloff amid a plunge in crude oil prices after OPEC failed to strike a deal with its allies on production cuts, adding to volatility already brought about by fears surrounding the coronavirus spread. Oil price crash is a worrying sign for the health of the world economy. Investor sentiments also turned weak amid the ongoing crisis at Yes Bank, which can impact the financial sector as a whole.

In the broader market, the S&P BSE Mid-Cap index was down 5.11% and the S&P BSE Small-Cap index was down 4.93%. The fall in both these indices was lesser than the fall in the Sensex.

Sellers outpaced buyers. On the BSE, 251 shares rose and 2138 shares fell. A total of 154 shares were unchanged. In Nifty 50 index, 4 stocks advanced while 46 stocks declined.

Stocks in Spotlight:

More From This Section

Yes Bank (up 26.93%), Bharti Infratel (up 0.22%) and Indian Oil Corporation (up 0.5%) were the top gainers.

ONGC (down 14.12%), Vedanta (down 12.29%), Reliance Industries (down 11.83%), Zee Entertainment Enterprises (down 11.42%) and Tata Steel (down 7.60%) were the top losers.

IndusInd Bank dived 8.30% to Rs 930.15. The bank deferred its plan to raise funds through additional tier-1 (AT-1) and / or tier 2 capital (T2 Bonds) of the bank.

Bharat Petroleum Corporation (BPCL) soared 7.46% to Rs 432.90 after the Government of India (GOI) invited bids for its entire 52.98% stake. The GOI has set firms with a minimum net worth of $10 billion as one of the primary criterias in its Expression of Interest (EoI) for BPCL. An expression of interest is an informal offer made by a strategic or financial buyer for the purchase of a business.

State Bank of India (SBI) tanked 6.21% to Rs 253.65. The RBI released the draft of Scheme of Reconstruction of Yes Bank. Accordingly, SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2450 crore. This will be 49% of the share capital of the reconstructed bank. SBI shall not reduce its holding below 26% before completion of three years from the date of infusion of the capital.

Global Markets:

European markets significantly lower while Asian stocks extended losses on Monday as S&P, Dow and Nasdaq futures entered a free fall amid a dramatic oil market crash and concerns over the coronavirus-hit global economy slowdown.

Oil prices plunged more than 30% after OPEC's failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it reportedly gets set to ramp up production. That's led to fears of an all-out price war.

Coronavirus continues to dominate market sentiment too. More than 106,000 people have now been infected by the virus and more than 3,600 have died globally, according to the latest figures from the World Health Organization. U.S. cases have now topped 500 and at least 21 deaths have been reported.

Meanwhile, the number of confirmed cases in Germany jumped by more than 100 over the weekend and is now up to nearly 800. Italy remains the European country with the worst outbreak, with over 7,000 cases. The U.K. government is holding an emergency meeting Monday to discuss further measures to halt the spread of the virus.

In US, stocks fell on Friday as fears of economic damage from the spread of the coronavirus intensified.

Powered by Capital Market - Live News

Also Read

First Published: Mar 09 2020 | 1:27 PM IST

Next Story