Saturday, April 1, 2023

Markets close higher on global rebound, but after weekly losses – Usky News

BENGALURU: Indian shares gained on Friday, tracking a rebound in global equities after authorities took a series of measures to support the global banking system, boosting risk appetite.
The Nifty 50 index closed 0.67% higher at 17,100.05, while the S&P BSE Sensex gained 0.62% to close at 57,989.90.
However, both indices posted losses of about 2% for the week, their biggest declines in nearly a month, mainly due to sharp declines in the week following the collapses of Silicon Valley Bank and Signature Bank.
The fallout from those closures threatened to spread more widely, with US regional lender First Republic Bank and Swiss lender Credit Suisse becoming new focal points before an influx of money helped stave off a crisis and global recession. Pushed the shares up.
Deepan Mehta, director at Elixir Equities, said the “measures inspire confidence in financials in the near term,” but warned of “potential contagion effects on financials.”
Nevertheless, shares of the Indian bank rose more than 1% on the day. Overall, nine out of 13 major sectoral indices posted gains, with information technology (IT) stocks also rising 1%.
JP Morgan said regional US banks account for around 2%-3% of revenue in TCS and Infosys, the highest in the IT sector.
Furthermore, investors are increasingly expecting that the Federal Reserve will ease on rate hikes, which led to the SVB collapse, and this bodes well for spending among US customers of IT firms.
“The Fed needs to strike a delicate balance between price stability and financial stability,” said Aishwarya Dadhich, fund manager at Ambit Asset Management, adding a 25 basis point hike is likely next week.
TCS shares declined 0.18% after CEO Rajesh Gopinathan unexpectedly resigned, though analysts expect a smooth transition.
Index heavyweights HDFC and HDFC Bank rose about 1.3% each after a report that the National Company Law Tribunal had approved their merger.


- Advertisement -

More News

Latest NEWS

- Advertisement -