Wednesday, March 22, 2023

Indian shares hit five-month low on US banking crisis worries – Usky News

BENGALURU: Indian shares hit a five-month low on Tuesday as the fourth session of the US banking crisis triggered a global selloff among lenders.
The Nifty 50 index closed 0.65% lower at 17,043.30, while the S&P BSE Sensex closed 0.6% lower at 57,900.19.
The Nifty 50 index has fallen over 4% in four consecutive sessions till Tuesday, taking its losses to 5.9% so far this year. If the deficit persists, it will be the worst quarter since 2020 ending March 31.
The fallout from the collapse of US lenders Silicon Valley Bank and Signature Bank widened despite government efforts to boost confidence, affecting bank stocks globally.
Saurabh Jain, assistant vice-president (research), SMC Global Securities, said after what happened in the US, public sector banks are worried about managing their treasuries.
Meanwhile, reassurances from US President Joe Biden and other policymakers did little to calm markets and prompted a reconsideration of the Federal Reserve’s interest rate outlook.
Jain said that many Indian IT services companies have huge exposure to the US banking sector and with the current environment, many will resort to cost saving measures, this is impacting IT stocks.
Public sector lenders declined 1.9% even as analysts allayed concerns saying Indian lenders were insulated from the US banking crisis. The IT stock fell 1.7%, while autos fell 0.9%.
Indian IT services provider Infosys Ltd hit a five-month low, while private lender Bandhan Bank Ltd fell to a 3-year low.
Amidst bets that the Fed will be less hawkish amid the banking crisis, investors will now focus on US inflation data due later in the day.


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