Coronavirus scare spooks investors as 400 stocks hit lower circuit, YES Bank surges 44%

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Coronavirus pandemic continues to batter the global equity markets including the Indian stock market as investors are once again gripped by fear.

Sensex is down 1,847.84 points or 5.42 percent at 32255.64, and the Nifty plunged 516.35 points or 5.19 percent and is trading at 9438.85.

All sectoral indices are trading in the red with banking stocks cracking the most. Bank Nifty tumbled over 6 percent as stocks including RBL Bank and IndusInd Bank tanked 15-18 percent followed by IDFC First Bank, ICICI Bank, HDFC Bank and Axis Bank.

IndusInd Bank share price plunged amid a widespread selloff in equities due to growing worries over the rising cases of coronavirus and the impact of the outbreak on the global economy. Shares of the private lender have been under pressure following concerns about the bank’s health.

However, YES Bank share price zoomed over 44 percent after the government notified a rescue plan for the private sector lender led by State Bank of India (SBI) and others.

According to the plan cleared by the Union Cabinet on March 13, the State Bank of India (SBI) is the lead investor in the consortium which will invest Rs 7,250 crore in Yes Bank, as it will pick 725 crore shares at Rs 10 each.

Emkay Global maintains a sell call on YES Bank, a sustainable revival will need many more steps, including continued capital support, it said.

Share price of PSU banking major State Bank of India shed over 7 percent after SBI Cards and Payment Services shares listed at a 12.85 percent discount amid coronavirus turmoil.

The listing at discount was largely expected by analysts who expected the stock to have a lukewarm opening in case the market witnesses another fall on Monday.

“We expect slowdown to continue at least till April 15 as overall spend of the card industry will come down due to shutdown of malls (except for essential goods), theatres etc. in several states of India,” Hardayal Prasad, MD & CEO at SBI Cards & Payment Services said in an interview to CNBC-TV18.

The volatility index surged over 11.37 percent at 57.32 level.

The top losers included IndusInd Bank, ICICI Bank, HDFC, Tata Steel and State Bank of India which shed 7-15 percent.

The most active shares included SBI Cards, YES Bank, State Bank of India, Reliance Industries and Kotak Mahindra Bank.

Markets were already grappling with the local issues and the recent global turmoil has completely derailed the recovery, at least for the next few quarters. We advise investors to utilise this phase and accumulate quality names on every significant fall, said Ajit Mishra, VP – Research at Religare Broking.

Meanwhile, traders should focus more on the risk management part and prefer hedged bets as we do not see this volatility easing any time soon. On the benchmark front, Nifty could hover within a broader range of 9,000-10,700 next week, he said.

As many as 400 stocks hit the lower circuit of BSE. These include Future Retail, Vakrangee, Indiabulls Ventures, Adani Green and Shilpa Medicare.

Over 375 stocks hit 52-week low on BSE. Among them were RBL Bank, Future Retail, UPL, Shoppers Stop, Varroc Engineering, PVR, Grindwell Norton, Shriram City Union and Rajesh Exports.

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