The market capitalisation of BSE-listed firm at the end of trading stood at Rs Rs 147 lakh crore, however, when the markets opened on Friday morning the market capitalisation tanked in a matter of seconds to Rs 143 lakh crore.
In what could be seen as a bloodbath on Dalal Street, investors lost Rs 4 lakh crore in terms of market capitalisation when the S&P BSE Sensex tanked 1,435 points on Friday morning. Domestic markets factored in shivers that were sent across by global peers after the Dow Jones fell 3.58 per cent on Thursday followed by S&P 500 that tanked 3.39 per cent. Domestic markets had ended the trading session on Thursday a tad bit higher after paring losses made during the day. Markets are expected to remain volatile as Coronavirus spreads across the globe.
The market capitalisation of BSE-listed firm at the end of trading stood at Rs Rs 147 lakh crore, however, when the markets opened on Friday morning the market capitalisation tanked in a matter of seconds to Rs 143 lakh crore, wiping off Rs 4 lakh crore off the market. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 1.3 per cent, while Japan’s Nikkei dropped down 2.3 per cent. This movement in global markets comes after the US Federal Reserve cut rates by half a percentage point on the back of Coronavirus spreading across the globe. The rate cut was, however, seen as a panic move by investors who think that markets will react in a more volatile manner after the cut.
S&P BSE Sensex tanked 1,435 points to trade at 37,035 points while the broader NBE Nifty 50 was just below the 11,000 mark, down by 2.80 per cent. The biggest losers on S&P BSE Sensex were IndusInd Bank that tanked 7.9 per cent; State Bank of India slipping 6 per cent and Bajaj Finance down by 5 per cent. None of the 30-stock on BSE Sensex were in the green.
On the NSE Nifty 50, Yes Bank was the biggest loser, down by 29 per cent. This drop in Yes Bank shares comes after the Reserve Bank of India said on Thursday that customers of the troubled private sector lender can only withdraw Rs 50,000 from the bank in the net 30 days. SBI on Thursday said that its Board has given in-principle approval to explore investment opportunities in Yes Bank. India’s largest PSU Bank, SBI may pick up 49 per cent stake in the bank along with LIC, according to ET Now. US President Donald Trump acknowledged on Thursday that the US economy could take a hit due to the spreading Coronavirus.