Benchmarks on recovery mode; Nifty flirts with 11,000 mark

Key benchmark indices continued to recover after FM Nirmala Sitharaman assured that every depositor's money is safe in Yes Bank. However, the undertone continued to be bearish amid weak global cues. The Nifty briefly crossed 11,000 mark. Sentiment was dented after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on Yes Bank, superseded its board, and imposed a withdrawal limit of Rs 50,000.

At 14:26 IST, the S&P BSE Sensex, was down 870.54 points or 2.26% at 37,600.07. The Nifty 50 index was down 274.1 points or 2.43% at 10,994.90.

Selling was broad based with S&P BSE Mid-Cap index declining 2.68% while the S&P BSE Small-Cap index falling 2.13%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 394 shares rose and 1937 shares fell. A total of 131 shares were unchanged. In Nifty 50 index, 3 stocks advanced while 47 stocks declined.

Stocks in Spotlight:

Yes Bank continued to witness strong volatility amid huge volumes. On BSE, 831.69 lakh shares were traded in Yes Bank counter, compared to a 2-week average of 121.88 lakh shares. After opening at Rs 33.15, the stock slumped as much as 84.94% to hit the day's low of Rs 5.55 in mid-morning trade. However, buying emerged at lower levels and pushed the stock above Rs 15 a share mark. Shares of Yes Bank jumped 210.81% from record low levels to trade at Rs 17.25 on BSE.

Finance Minister Nirmala Sitharaman on Friday said that Reserve Bank of India is working towards for early resolution of Yes Bank issue. RBI governor has assured that here will be no loss to any Yes Bank depositor, the finance minister said, adding that the steps taken to take control of Yes Bank is in interest of depositors, bank and the economy.

Music Broadcast (MBL) on Thursday (5 March) said it redeemed last outstanding non-convertible debentures (NCDs) of Rs 50 crore to become almost debt free. With this the company has utilised its pending IPO proceeds for the redemption of listed NCD's and post making this payment, all the IPO proceeds have been utilised for the purpose for which it was raised and there has been no instance of deviation or variation in utilizing the IPO proceeds. Shares of Music Broadcast were trading 0.74% lower at Rs 26.85.

Adani Green Energy (AGEL) said commissioned its 50 MW wind power project having Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at Rs 2.65 kilo watt per hour for a period of 25 years on Thursday, 5 March 2020. With this, 2.55 GWac of renewable energy projects are operational. Adani Green Energy (AGEL) has total 5.99 GWac portfolio of renewable capacity in India, out of which 3.44 GWac projects are under implementation. The announcement was made during market hours today, 6 March 2020. Shares of Adani Green Energy were trading 4.98% lower at Rs 144.95.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee was trading at 73.5525, lower than its previous closing of 73.3325.

The yield on 10-year benchmark federal paper rose to 6.18% at 14:13 IST compared with 6.239% in the previous trading session.

In the commodities market, Brent crude for May 2020 settlement was down $1.09 to $48.9 a barrel. The contract fell 2.23% to settle at $49.99 a barrel in the previous trading session.

MCX Gold futures for 3 April 2020 settlement fell 0.11% to Rs 44,410.

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