The stock market displayed an unfavourable sign in the opening session on Friday as market benchmark Sensex plummeted over 1,400 points or 2.74% at 37,418.28 and NSE Nifty plunged 318.30 points or 2.82%, to 10,950.70. This comes amid a massive selloff in global stocks, which in turn, is a result of rising concerns over the economic strain of the coronavirus outbreak.

The rupee fell 53 paise to 73.86 against the US dollar in the morning session. Incessant foreign fund outflow also spooked market participants, traders said.

In the previous session, the 30-share BSE barometer settled 61.13 points or 0.16% higher at 38,470.61, and the Nifty advanced 18 points or 0.16% to finish at 11,269.

On a net basis, foreign institutional investors (FPIs) sold equities worth Rs 2,476.75 crore, while domestic institutional investors bought shares worth Rs 2,510.89 crore on Thursday, data available with stock exchanges showed.

Shares of Yes Bank tanked 25%. The Reserve Bank of India (RBI) on Thursday imposed a moratorium on troubled private lender Yes Bank and also superseded the Board of Directors for a period of 30 days owing to a serious deterioration in the financial position of the bank. 

In a notification, the government said depositors will not be allowed to withdraw more than Rs 50,000. The restrictions in the withdrawal of deposits will be subject to certain conditions and the RBI may, by a general or special order, permit the  bank to allow withdrawal of over Rs 50,000 in the following unforeseen circumstances

Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

The State Bank of India (SBI) has been authorised by its board members (an "in-principle" approval, it is being said) to invest in Yes Bank. However, SBI cracked over 6% in the morning session and was among the top losers on Sensex.

IndusInd Bank, Tata Steel, Bajaj Finance, Axis Bank and Ultratech Cement were also in the red.

According to traders, investor sentiment was hit by intense selling in global equities as heightened volatility on concerns over the economic impact of coronavirus on world economies plagued markets.

Bourses in Shanghai, Hong Kong, Seoul, and Tokyo cracked up to 3%.

Stock exchanges in the US, too, ended up to 3% lower on Thursday.

Global oil benchmark Brent crude futures cracked 1.04% to USD 49.47 per barrel.

(With PTI inputs)