Sensex slides deeper into the red, losses deepen across the market

NEW DELHI: Crude oil prices dived 31 per cent within hours, the worst since Gulf war in 1991, triggering a rout in domestic stocks on Monday. Snowballing of YES Bank crisis only fanned investor fears. At 9.20 am, the BSE Sensex was trading at 1,329.71 points, or 3.54 per cent, at 36,246.91. Nifty plunged 375.10 points, or 3.14 per cent, to 10,614.35. Investor wealth, as suggested by BSE market capitalisation, plunged Rs 4.10 lakh crore to Rs 139.53 lakh crore. While a steep fall in crude oil prices could be a boon for India, which runs a trade deficit and has high inflation, a steep fall in crude prices also paints a weak outlook for the world economy.“Oil output cut was already factored in. But Opec+ talks failing shocked the market,” said Azlin Ahmad of Argus Media. Ahmad said that crude prices may fall further in days to come and it is hard to say where the floor is. Shares of the most-valued firm Reliance Industries tanked 5.33 per cent to Rs 1,202.40. Stocks of oil marketing companies HPCL, BPCL and IOC fell up to 10 per cent. Investors were also concerned over the impact of YES Bank on the financial sector as a whole. Private sector lender IndusInd Bank has announced a deferment of its plans to raise funds using additional tier-1 instrument. The scrip was down 6.39 per cent to Rs 949.50 in early trade. Indiabulls Housing said YES bank owes Rs 662 crore to the housing finance company in the form of bonds. The stock fell 12.68 per cent to Rs 222.15.The CBI has in fact booked YES Bank co-founder Rana Kapoor, DoIT Urban Ventures, a company allegedly held by his family members, and DHFL promoter-director Kapil Wadhawan for alleged criminal conspiracy, cheating and corruption. Shares of DHFL fell 5 per cent to Rs 15.89. YES Bank surged 20 per cent in early trade, only to retreat. The stock was up 7 per cent at Rs 17.40. State Bank of India said it will pick up a 49 per cent stake in YES Bank for Rs 2,450 crore and clarified that all the deposits and liabilities of the reconstructed bank will continue in the "same manner". Shares of SBI declined 3 per cent in early trade.

from Economic Times https://ift.tt/3aPJZFV