NSE in its circular said that no Future and Options contracts shall be available in the Yes Bank for trading in the equity derivative segment from May 29, 2020 onwards.
The Indian equity market has been beaten black and blue after Sensex and Nifty touched their lowest levels of 2020 as banking stocks got hammered after the Reserve Bank of India placed YES Bank under a moratorium and took over its board.
Sensex is down 1,203.18 points or 3.13 percent at 37267.43, and the Nifty shed 367.10 points and is trading at 10901.90.
Banking stocks came under pressure after the sell-off in the Yes Bank as RBI superseded the bank's board and capped per day deposit withdrawal limit at Rs 50,000.
Major global brokerages also remained bearish on the Yes Bank stock post the RBI action.
National Stock Exchange (NSE) in its circular said that no Future and Options contracts shall be available in the Yes Bank for trading in the equity derivative segment from May 29, 2020 onwards.
JP Morgan is underweight on YES Bank and has cut target to Re 1 while UBS has maintained a sell call with target at Rs 20 per share. Macquarie has an underperform call on the stock with target at Rs 25 per share.
"The YES Bank problem is neither the beginning nor it is the end for the Indian banking system in particular and Indian financial system in general. The Twin Balance Sheet (TBS) problem phase-I had bank and infrastructure companies in trouble; however, that was the scenario five years back;deeply now we have graduated to TBS-II which has added two more new entrants to the problematic space: NBFCs and real estate."
"The Mudra loans for PSU banks and unsecured loans extended by small banks and microfinance institutions to individual borrowers to the tune of Rs 1.60 lakh could turn into a serious cause for concern going forward if economic situation does not improve fast enough leading to more salary cuts and job losses."
"Indian financial system is headed for a troubled state unless some major damage control is initiated by the regulators and the government. It is an irony that the stock market’s fancy with financials does not seem to end while the financial system here is getting more and more stressed," said Rajat Bose of rajatkbose.comCoronavirus fear which has worsened beyond China has stoked fears of a prolonged world economic slowdown. The metal index cracked over 4 percent dragged by Tata Steel, JSW Steel, Jindal Steel & Power, Hindalco Industries, Vedanta, Welspun Corp and NALCO.
Apart from YES Bank, the top losers included Tata Motors, IndusInd Bank, Tata Steel, State Bank of India and Zee Entertainment.
The most active stocks included State Bank of India, IndusInd Bank, Reliance Industries, HDFC Bank and Bajaj Finance.
524 stocks hit fresh 52-week low on the BSE including YES Bank, Allahabad Bank, SpiceJet, Piramal Enterprises, PNB Housing, IndusInd Bank, Future Retail, LIC Housing, Andhra Bank, Dilip Buildcon, Graphite India, Concor, BHEL, Kalpataru Power, Vedanta, Hindalco Industries, InterGlobe Aviation, NBCC, Adani Ports, Tata Chemicals and ONGC among others.
About 222 shares have advanced, 1703 shares declined, and 80 shares are unchanged.Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.