The Bombay Stock Exchange (BSE) on Friday recovered over 900 points after witnessing a plunge of nearly 1,100 points in a span of a couple of minutes in the afternoon session. Although the value of rupee against the dollar saw some improvement and the global cues were solid as well, still Sensex saw the alarming collapse due to a major selloff in finance stocks.
After the plunge of 1127.58 points in the 30-share index, the Sensex hit an intra-day low of 35,993.64 in the afternoon. Just after the collapse, the BSE managed to do damage control and saw a remarkable improvement by recovering 900 points within a short duration.
On the other hand, the National Stock Exchange (NSE) rocked below the 11,000-mark on Friday afternoon after plummeting by 367.90 points. The Nifty, which recovered nearly 300 points after the fall, was trading at 11,169 points at 1400 hours.
The primary reason for the collapse was due to heavy selling in the stock market. Sectors like realty, banking, healthcare, tech, IT, FMCG, auto, power consumer durables, metal, capital goods, infrastructure, metal and PSU indices fell up to 3.65 per cent.
Yes Bank collapsed by 34 per cent on Friday emerging as the biggest loser of the day after the Reserve Bank of India cut short the tenure of Yes Bank’s founding CEO Rana Kapoor and asked the bank to look for his replacement by January 2019.
Among other lenders, Punjab National Bank, State Bank of India, Bank of Baroda, Federal Bank and Kotak Bank plummeted up to 7.44 per cent.