Coronavirus, not developments at YES Bank, will determine market direction

The health scare would taper-off in India also in a matter of a few weeks/months, based on the quantum of spurt in the initial stages and also depending upon the possible role of temperature.

Failure of YES Bank with over Rs 4-lakh crore of banking business and global threat of coronavirus (COVID-19) have shaken the domestic equity markets. Since the February-mid, the global fear of virus spread has eroded around Rs 12 lakh crore in overall domestic market-capitalisation (market-cap) - from Rs 159.60 lakh crore till a day before YES Bank was put on moratorium. Another Rs 3.30 lakh crore of market wealth got wiped out after YES Bank was put on moratorium last week.

In the case of YES Bank, the authorities have done the right thing – of course, out of compulsion –