HomeMarketsIndian MarketsSensex falls over 800 points dragged by selloffs in financial stocks

Sensex falls over 800 points dragged by selloffs in financial stocks

In tumultuous trading today, Indian equities lost more than 1%, pulled down by a selloff in banking companies, while the failure of Silicon Valley Bank worsened confidence.
As of 14:16 p.m. IST, the S&P BSE Sensex is down 1.4% at 58,309.51.

Meanwhile, US officials outlined preparations on Sunday to mitigate the effects of the failure of Silicon Valley Bank (SVB), assuaging worries of contagion.

“Selling in the banking industry In India, it is not directly related (to SVB events), but for the time being, one can say it has more of an emotional influence, as Anita Gandhi, director at Arihant Capital Markets, agreed.

Analysts in India do not anticipate the SVB issue to have an impact on the local banking sector.

According to V. K. Vijayakumar, chief investment strategist at Geojit Financial Services, the SVB issue has had little influence on Indian banks and is unlikely to disrupt markets for long.

Bank stocks fell 2.1%, while those in the public sector lost 2.3%. Automobile manufacturers lost 2.2%.

IndusInd Bank Ltd. suffered the highest loss in the Nifty among banking stocks, falling 7.6%, after analysts claimed the RBI’s approval of the private lender’s CEO’s re-appointment duration fell short of the suggested time.

On the other hand, Indian IT services giant Tech Mahindra rose more than 10% after naming Infosys veteran Mohit Joshi as its next CEO when incumbent C.P. Gurnani leaves in December.

Meanwhile, Indian investors await retail inflation data, which is expected to fall to 6.35% in February but remain over the Reserve Bank of India’s upper limit for the second month in a row, according to a Reuters poll of 43 analysts.

Yes Bank Ltd. shares tumbled as much as 13% after the business announced that its three-year lock-in term as part of the lender’s restructuring expired today.

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