Sensex tanks over 1400 points in early trade, Nifty down 360; Yes Bank slips 15%
Equity indices slumped in opening trade on Friday with BSE Sensex crashing over 1400 points.
The BSE Sensex fell 1459 points to trade at 37,011.09 in the opening session while Nifty slipped 362.30 points to trade at 10,906.70.
Yes Bank’s shares fell by 15% in early trade following the Reserve Bank of India (RBI) placing it under moratorium late Thursday evening owing to the bank’s weak financials.
The central bank has seized control of Yes Bank Ltd, has capped withdrawals at Rs 50,000 and has imposed restrictions on the bank’s operations till April 3. The move came as the central bank’s measure to implement a bailout plan for the troubled lender that was once the country’s fifth largest private lender by assets.
However, RBI has assured depositors and has advised them not to panic as this has been done to put in place a scheme for reconstruction or amalgamation of the bank.
“We are working on a plan and we will disclose it in the next few days,” a top RBI official said, requesting anonymity.
According to analysts quoted by news agency IANS, the fear of coronavirus outbreak severely impacting global economy also weighed on the investor sentiments.