Sensex loses about 1,500 pts; Nifty below 10,600

Domestic market crashed on Monday, mirroring dismal global cues. Selloff in global shares was triggered by a plunge in crude oil prices after OPEC failed to strike a deal with its allies on production cuts, adding to volatility already brought about by fears surrounding the coronavirus spread. Investor sentiments also turned weak amid the ongoing crisis at Yes Bank, which can impact the financial sector as a whole. The Nifty slipped below 10,600 mark, trading at nearly 7-month low.

At 10:27 IST, the barometer index, the S&P BSE Sensex, was down 1485.33 points or 3.95% at 36,091.29. The Nifty 50 index tanked 412.20 points or 3.75% at 10,557.15.

Selling was broad based with the S&P BSE Mid-Cap index tumbling 3.38% and the S&P BSE Small-Cap index declining 3.57%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 227 shares rose and 1738 shares fell. A total of 100 shares were unchanged. In Nifty 50 index, 4 stocks advanced while 46 stocks declined.

Buzzing Index:

Shares of PSU OMCs were trading high after Brent Crude tanked nearly 30% amid price war between Saudi Arabia and Russia regarding production cuts.

Hindustan Petroleum Corporation (up 8.29%), Bharat Petroleum Corporation (up 5.08%) and Indian Oil Corporation (up 1.98%) were top gainers in OMC segment.

Crude prices took a hit after Russia failed to agree to OPEC's proposal for an additional production cut of 1.5 million barrels per day.

In the commodities market, Brent crude for May 2020 settlement was down $13.64 at $31.63 a barrel. The contract tanked 9.44% to settle at $ 45.27 a barrel during the previous trading session.

Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

Stocks in Spotlight:

PNB Housing Finance (PNBHF) slumped 8.97% to Rs 273.10 after India Ratings and Research downgraded the company's non-convertible debentures (NCDs) rating to IND AA from IND AA. The rating agency has maintained stable outlook on the housing financier's NCDs worth Rs 218.97 crore (reduced from Rs 280 crore).

Yes Bank soared 16.98% after RBI released the draft of Scheme of Reconstruction of the bank and has invited suggestions and comments up to 9 March 2020. The scheme called 'Yes bank Reconstruction Scheme, 2020' shall come into force on such date (appointed date) as the Central Government may, by notification in the Official Gazette, specify.

State Bank of India tanked 4.47% after the RBI released the draft of Scheme of Reconstruction of Yes Bank. Accordingly, SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2450 crore. This will be 49% of the share capital of the reconstructed bank. SBI shall not reduce its holding below 26% before completion of three years from the date of infusion of the capital.

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