Sensex Drops 400 Points; Yes Bank Plunges 9%

Benchmark indices fell sharply in trade today, led by losses in yes bank shich dived almost 9 per cent in trade. In fact, the entire banking space saw huge cuts led by government owned lenders.

The Sensex was trading with losses of 417 points, while the Nifty dived 126 points in trade. Shares in Yes Bank have dropped almost 9 per cent in trade after Moody's Investors downgraded Yes Bank Ltd.'s long-term foreign currency issuer rating to 'B2' from 'Ba3', bringing it down by two notches. A downgrade in rating will always make it difficult to raise money at attractive levels.

Shares in Idea Vodafone fell 6 per cent in trade after falling as much as 7 per cent, after reports that the company may have to shut show, if the government does not provide relief.

"We will shut shop if we don't get relief, it could be the end of the story for us. There is no company in world that could get that kind of money in three months," the company's chairman Kumar Mangalam Birla said, calling AGR as the "big elephant" that needed to be addressed urgently.

Shares in Omaxe hit the lower end of the circuit filter, dropping 20 per cent in trade. There were only sellers in the counter today.

Meanwhile, most markets across the globe were trading with gains with the German DAX, French CAC and the UK's FTSE higher in trade.