At 11:31 IST, the barometer index, the S&P BSE Sensex, tanked 1614.17 points or 4.3% at 35,962.45. The Nifty 50 index slumped 451.75 points or 4.11% at 10,537.70.
Domestic market mirrored dismal global cues. Selloff in global shares was triggered by 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.
Selling was broad based with S&P BSE Mid-Cap index tumbling 3.66% and S&P BSE Small-Cap index declining 3.94%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 263 shares rose and 1921 shares fell. A total of 128 shares were unchanged. In Nifty 50 index, 3 stocks advanced while 47 stocks declined.
Buzzing Index:
The Nifty Metal index slumped 5.44% to 2,065.15, extending its losing streak to fourth consecutive session. The metal index has tanked 11% in four trading sessions from its previous closing high of 2320.75 posted on 3 March 2020.
Prices of industrial metals continued to remain under pressure as countries failed to contain COVID 19 virus which can heighten worries of a slowdown in global economic growth. China is reportedly the largest producer and consumer of industrial metals. Given such a dominant market share any slowdown in the Chinese economy has a major impact on metal prices and global markets.
Vedanta (down 10.44%), NMDC (down 8.25%), Jindal Steel & Power (down 7.96%), Steel Authority of India (down 6.53%), Tata Steel (down 5.91%), National Aluminium Company (down 4.54%), Ratnamani Metals & Tubes (down 4.03%), JSW Steel (down 4%), Hindalco Industries (down 3.66%), Coal India (down 3.49%), Hindustan Zinc (down 2.94%) and Tata Metaliks (down 2.55%) were top losers in metal segment.
Stocks in Spotlight:
Indiabulls Housing Finance crashed 13.7% after the NBFC major informed that Yes Bank owes the company Rs 662 crore via AT-1 Bonds.
The Reserve Bank of India released a draft of Scheme of Reconstruction of Yes Bank. As per the draft scheme, the instruments qualifying as Additional Tier 1 capital shall stand written down permanently, in full.
Bharat Petroleum Corporation (BPCL) soared 12.15% to Rs 451.80 after media reports stated that the Government of India (GOI) has invited bids for its entire 52.98% stake as on Saturday, 2 May 2020. As per reports from media houses, the Government of India is planning to sell its entire 52.98% stake on Saturday, 2 May 2020. 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 Bharat Petroleum Corporation. An expression of interest is an informal offer made by a strategic or financial buyer for the purchase of a business.
IndusInd Bank dived 6.5%. The bank deferred its plan to raise funds through additional tier-1 (AT-1) and / or tier 2 capital (T2 Bonds) of the bank.
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