YES Bank crisis, Coronavirus fears spell double trouble for markets

Benchmark indices enter correction territory; rupee near 74 against dollar

The domestic market slumped on Friday after the crisis at YES Bank triggered a sharp sell-off in financial stocks. Investor sentiment was further dampened by the continued rout in world markets as coronavirus cases neared 100,000, stoking fresh fears of a global recession. The Sensex dropped 894 points, or 2.32 per cent, to end at 37,577 — the lowest close since October 7. 

The Nifty50 index plunged 280 points, or 2.5 per cent, to close at 10,989, breaching key support levels. Both the indices are now down 11 per cent from their all-time highs, recorded in mid-January. 

The rupee fell