Sensex, Nifty down on Fed, SVB jitters

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The BSE Sensex closed 1.12 per cent down at 59,135.13. During intraday trading, the 30-share index tanked 921 points. The broader NSE Nifty fell 1 per cent, or 176.7 points, to 17,412.9.

BSE Sensex, Sensex, Domestic stock markets, silicon valley bank, Business news, Indian express, Current AffairsThe fall in the shares of US banks added to the overall global uncertainty regarding the quantum of the next Fed rate hike, said Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services Ltd.

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The domestic stock market declined by around 1 per cent amid the sell off in the global markets.

The BSE Sensex closed 1.12 per cent down at 59,135.13. During intraday trading, the 30-share index tanked 921 points. The broader NSE Nifty fell 1 per cent, or 176.7 points, to 17,412.9.

“European and Asian equities dropped on Friday as fears over the health of banks’ bond portfolios (reflected in troubles emanating at a Silicon Valley-based lender) compounded investors’ nervousness,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

On the SVB crisis, veteran banker Uday Kotak said tweeted: “Overnight developments in US banking: markets, analysts, investors underestimate the importance of financial stability for the balance sheet of a bank. When interest rates move up 500 bps from zero in a year, an accident was waiting to happen somewhere.”

The fall in the shares of US banks added to the overall global uncertainty regarding the quantum of the next Fed rate hike, said Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services Ltd.

© The Indian Express (P) Ltd

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