March 6, 2020 / 10:46 AM / a month ago

Indian shares drop as Yes Bank fallout pulls down banking stocks

BENGALURU, March 6 (Reuters) - Indian shares dropped more than 2% on Friday, dragged down by banking stocks after the country’s central bank took control of Yes Bank Ltd’s board due to its deteriorating financial condition.

The NSE Nifty 50 index fell 2.48% to a mid-September low of 10,989.45, while the benchmark S&P BSE Sensex slid 2.32% to 37,576.62. For the week, the indexes closed down 1.9% each, following a 7.3% plunge in the previous week.

Yes Bank plunged 56.1% to its lowest in over a decade after the Reserve Bank of India took control of the country’s fifth-largest private sector lender and limited withdrawals.

RBI’s move triggered the stock’s worst single-day performance since it listed in 2005, sending the broader market and bank stocks into a tailspin, with the Nifty Bank index closing down 3.52%.

Market sentiment was also hurt by the fall in global stocks due to the fast-spreading coronavirus, which has killed several thousands and disrupted supply chains across the world.

For the mid-day report, click (Reporting by Chris Thomas in Bengaluru)

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