Yes Bank shares plunge by over 10 percent after Canadian businessman rejection report

Equity benchmark indices ended substantially lower on Tuesday due to profit booking by traders amid dismal macro-economic indicators.

HIGHLIGHTS

• Yes Bank tumbled by 10.4 percent to close at Rs 50.40 per share.
• Zee Entertainment dropped by 5.1 percent, GAIL by 4.4 percent.

Equity benchmark indices ended substantially lower on Tuesday due to profit-booking by traders amid dismal macro-economic indicators. The BSE S&P Sensex closed 248 points lower at 40,240 while the Nifty 50 was down by 81 points at 11,857.

All sectoral indices at the National Stock Exchange were in the red with Nifty PSU bank dropping by 1.6 percent, IT and metal by 1.4 percent each and FMCG by 1 percent.

Joseph Thomas, Head of Research at Emkay Wealth Management, said the low GDP growth rate may be prompting investors to wait for a little more while till they see the green shoots.

Among stocks, Yes Bank tumbled by 10.4 percent to close at Rs 50.40 per share ahead of a crucial board meeting to decide on investment offers. Reports suggest that the board will reject the offers from SPGP Holdings and controversial Canadian businessman Erwin Singh Braich.

Rakesh Jhunjhunwala may also be out of contention.

Zee Entertainment dropped by 5.1 percent, GAIL by 4.4 percent, JSW Steel and Bharat Petroleum Corporation by 2.9 percent each, and Power Grid Corporation by 2.7 percent. The other losers included UltraTech Cement, ITC, IndusInd Bank and Axis Bank.

However, those which showed marginal gains were Bajaj Finance, Hindustan Leve, Cipla, Eicher Motors and Bharti Airtel.

Meanwhile, Asian equity markets too were on a weak wicket as investors refrained from making major bets before December 15, when the next round of US tariffs on Chinese imports is due to take effect. A Chinese Commerce Ministry official said a day earlier that Beijing hopes to make a trade deal with Washington as soon as possible.

Hong Kong's Hang Seng lost by 0.22 percent while Japan's slipped by 0.09 percent. But South Korea's Kospi moved up by 0.45 percent.