Nifty hovers near 10,900 mark; NBFCs tumble

Equity indices traded sideways near day's low with heavy losses in mid morning trade. The Nifty hovered around 10,900 mark. At 11:32 IST, the barometer index, the S&P BSE Sensex, was down 1177.83 points or 3.06% at 37,292.78. The Nifty 50 index was down 357.65 points or 3.17% at 10,911.35.

In the broader market, the S&P BSE Mid-Cap index was down 3.23% while the S&P BSE Small-Cap index was down 2.83%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 238 shares rose and 1823 shares fell. A total of 99 shares were unchanged. In Nifty 50 index, all 50 stocks declined.

Domestic shares crashed amid dismal global cues triggered by the global coronavirus outbreak. Sentiment further deteriorated after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on Yes Bank, superseded its board, and imposed a withdrawal limit of Rs 50,000.

Buzzing Index:

The Nifty Financial Services index tanked 3.7% to 12,973.80. NBFC stocks tumbled amid concerns of collateral damage from Yes Bank's fall.

Indiabulls Housing Finance (down 12.1%), Edelweiss Financial Services (down 11.99%), Shriram Transport Finance Corporation (down 8.22%), LIC Housing Finance (down 7.46%), Bajaj Finance (down 5.11%), Manappuram Finance (down 4.65%), Bajaj Finserv (down 4.24%), IIFL Finance (down 4.06%), Cholamandalam Investment and Finance Company (down 3.19%), Mahindra & Mahindra Financial Services (down 3.07%) and Muthoot Finance (down 2.4%) were top losers in NBFC segment.

Stocks in Spotlight:

Punjab National Bank (PNB) board approved share exchange ratio for the merger with Oriental Bank of Commerce and United Bank of India. Accordingly share swap ratio will be 1150 equity shares of Rs 2 each of PNB for every 1000 equity shares of Rs 10 each of Oriental Bank of Commerce and 121 equity shares of Rs 2 each of PNB for every 1000 equity shares of Rs 10 each of United Bank of India.

Shares of United Bank of India crashed 19.79%, shares of Punjab National Bank were trading 5.35% lower while shares of Oriental Bank of Commerce were up 2.34%.

Union Bank approved the share exchange ratio for a merger with Andhra Bank & Corporation Bank. Share swap ratio, as per the filing stands at 325 shares of Union Bank for every 1,000 shares of Andhra Bank & 330 shares of Union Bank of India for every 1,000 shares of Corporation Bank.

Shares of Corporation Bank crashed 19.95%, Andhra Bank slumped 7.54% while shares of Union Bank of India shed 2.54%.

Force Motors declined 4.73% to Rs 998.85 after the auto major released its monthly business update after trading hours yesterday, 5 March 2020. The company's production slipped 3.16% to 1,864 units in February 2020 over 1,925 units in February 2019. Domestic sales were down 18.92% to 2,000 units in February 2020 as against 2,467 units registered in February 2019. The firm's exports jumped 21.87% to 117 units in February 2020 over 96 units February 2019.

Global Markets:

Asian markets were trading sharply lower on Friday following another Wall Street rout as disruptions to global business from the coronavirus beyond China worsened, stoking fears of a prolonged world economic slowdown.

In US, stocks closed sharply lower on Thursday as anxieties about the worldwide spread of COVID-19 lingered and concerns about the ability of governments to control the impact of the disease on their economies sent the benchmark US Treasury note yield to a fresh all-time low.

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