BENGALURU (Reuters) - Indian shares dropped more than 2% on Friday, dragged down by banking stocks after the Reserve Bank of India (RBI) took control of Yes Bank Ltd’s (YESB.NS) board due to its deteriorating financial condition.
The NSE Nifty 50 index .NSEI fell 2.48% to a mid-September low of 10,989.45, while the benchmark S&P BSE Sensex .BSESN 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 RBI 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.
Reporting by Chris Thomas in Bengaluru