Last Updated: March 20, 2023, 14:26 IST
Why is market falling right this moment?
Since the start of the Silicon Valley Bank (SVB) disaster on March 9, Sensex has turn out to be weaker by over 3,000 factors.
Indian shares traded decrease on Monday as some buyers apprehensive about contagion dangers within the world banking system regardless of a historic Swiss-backed acquisition of troubled Credit Suisse by UBS Group providing some aid. India’s benchmark Sensex fell 1.49 per cent or 865 factors to 57124 factors whereas Nifty misplaced 1.53 per cent or 265 factors to 16834 factors.
Since the start of the Silicon Valley Bank (SVB) disaster on March 9, Sensex has turn out to be weaker by over 3,000 factors.
Key components behind the D-Street sell-off
US Banking Crisis
The banking sector is reeling from the shockwaves attributable to the current collapse of Silicon Valley Bank and Signature Bank, each of which skilled vital losses of their bond portfolios. These failures mark the biggest financial institution collapses because the world monetary disaster and have had a profound affect on world markets, which have been steadily declining because of this.
“The fears of economic contagion rising from the banking disaster in US and Europe seem like largely contained by the fast response of the governments and central banks. The volatility index within the US at round 25 doesn’t point out any panic like in 2008. However, buyers could stay cautious and anticipate stability. The enhance to India’s macros arising from a discount in commerce deficit and large decline in Brent crude to $73 are positives from the market perspective,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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