Sensex plunges over 1200 points, Nifty opens below 11K; TCS, SBI, Yes Bank top losers

Image courtesy: Reuters

Indian equity indices on Friday (March 6) witnessed a weak start with the Sensex down 1,281.85 points or 3.33% at 37188.76, and the broader Nifty also down 386.30 points or 3.43% at 10882.70. Major losers on the Nifty include TCS, Tech Mahindra, SBI, Tata Motors, Yes Bank, RIL, and ICICI Bank.

Banking stocks are under pressure after the RBI on late Thursday said it had taken over Yes Bank`s board for 30 days, and imposed limits on withdrawals, due to a serious deterioration in the fifth-largest private sector lender`s financial position.

Meanwhile, Asian shares and US stock futures fell today following another Wall Street rout as disruptions to global business from the coronavirus beyond China worsened, stoking fears of a prolonged world economic slowdown.

MSCI`s broadest index of Asia-Pacific shares outside Japan was down 1.3%. Australian shares were down 1.64%, while Japan`s Nikkei stock index slid 2.29%.

Yields on 10-year US Treasuries fell to a record low and two-year yields fell to the lowest in more than three years as investors increased bets that the Federal Reserve will follow this week`s surprise 50 basis point rate cut with further easing to prevent corporate bond spreads from widening further.

Tumbling yields hammered the dollar, which traded near a six-month low versus the yen and close to a two-year trough against the Swiss franc.

Oil prices fell due to worries that non-OPEC oil producers might not agree to output cuts even though global energy demand is weakening.

US stock futures erased early gains to trade down 0.12% in Asia on Friday. The S&P 500 tumbled 3.39% on Thursday. The benchmark S&P 500 ended down more than 10% from its Feb. 19 closing high, after last week logging its biggest weekly percentage decline since October 2008.

Money markets were pricing in another 25 basis-point-cut from the current 1% to 1.25% range at the next Fed meeting on March 18-19 and a 50-basis-point cut by April.

(With Agency Inputs)