Black Friday at Dalal Street; YES Bank, SBI among top losers on BSE

After Friday's volatile trading session, YES Bank ended 56% lower at Rs 16.20 on BSE, after falling nearly 85% lower to the all-time loss of Rs 5.55. Shares of State Bank of India stock ended 6.19% lower at Rs 270.45 on BSE.

Dalal Street witnessed another Black Friday, with Sensex and Nifty dropping 3% each on growing coronavirus fears in global markets. Besides coronavirus fears, the markets were also taken aback after apex bank imposed a moratorium on Yes Bank, which was the fifth-largest private lender of the country. RBI has also superseded the lender's board and imposed a withdrawal limit of Rs 50,000.

Where Sensex has made a low of 37,011.09, erasing 1,459 points against its previous close of 38,470, Nifty fell to 10,827.40, declining 441 points from 11,269, seen on Thursday. Capping early losses, domestic benchmark index Sensex sank 893 points to end at 37,576, while Nifty plunged 289 points to close at 10,979.

YES Bank, Tata Motors, IndusInd Bank, SBI, Zee Entertainment and Tata Steel were among the top losers.

 Although selling was broad-based, banking stocks came under major selling pressure after the YES bank update. All sectoral indices were trading in the red, with the banking, metal and media indices being the biggest losers, declining over 4% each), followed by 3-2% decline in realty, FMCG and financials.

Kotak Mahindra Bank, HDFC Bank, Bank of Baroda, Axis Bank, ICICI Bank and IDFC First Bank were among the major losers from Nifty Bank.

Metal stocks that fell today in Nifty metal were Tata Steel, JSW Steel, Jindal Steel & Power, Hindalco Industries, Vedanta, Welspun Corp and NALCO, that fell in the range of 3-6%.

YES Bank, SBI, Tata Motors, ICICI Bank, ITC were among the volume toppers. The most active stocks included State Bank of India, IndusInd Bank, Reliance Industries, HDFC Bank and Bajaj Finance.

Among 52-week lows that hit today included shares of YES Bank, Adani Ports, Allahabad Bank, SpiceJet, Piramal Enterprises, PNB Housing, IndusInd Bank, Future Retail, LIC Housing, Andhra Bank, Dilip Buildcon, Graphite India, Concor, BHEL, Kalpataru Power, Vedanta, Hindalco Industries, InterGlobe Aviation, NBCC, Adani Ports, Tata Chemicals and ONGC among others.

Global shares are on course for the worst week since the 2008 crisis amid virus outbreak that has rattled global equity markets and caused the economic slowdown.

The virus outbreak has taken toll policymakers worldwide, spreading across geographies and businesses, with supply dislocations, travel restrictions broadening out market volatility further. It has caused around 3408 deaths, with a number of infected cases rising to 100,242 today. although, of this, 55000 have been recovered worldwide.

Speaking on the expectations of the next week, Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote said, "Given the volatility and fearful psychology, market participants are likely to drift away and reduce their exposure to equities till clarity emerges on financial distress (Yes Bank and COVID-19). RBI might deliver a surprise rate cut and Yes Bank baby will be taken care off by the bell-weather mother of all financial institutions of India, SBI and LIC, this should calm the nerves of the market."

On RBI and YES Bank Vinod Nair, Head of Research at Geojit Financial Services suggested," The bailout is a positive development lowering long-term systemic problems and will increase safety for depositors. The market will be watchful about the final resolution to be offered by RBI & SBI soon".

Commenting on Nifty's technical position, Amit Shah, Technical Research Analyst with Indiabulls Securities said," Markets are quite weak however, the situation continues to remain in the oversold territory. 10,900 zone is the near term support zone and it will be interesting to watch sustenance below the mentioned zone. Once Nifty decisively closes above 11,350 the process of recovery is likely to materialize till then Index will continue to remain in weak territory. Fresh positional shorts should be avoided as the index is quite oversold and near the important support zone."

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