Key equity market benchmark indices slid by about 1.5% on Monday amid growing global concerns about the failure of U.S. banks and its likely impact on the Indian economy.
Led by a drop in banking, auto and technology stocks, the S&P BSE Sensex slumped 897.28, points or 1.52%, to 58,237.85 points.
The Sensex stocks which lost the most include IndusInd Bank (7.46%), State Bank of India (3.21%), Tata Motors (3.06%), M&M (2.57%) and Infosys (2.48%).
The NSE Nifty-50 index, too, fell 258.60 or 1.49% to 17,154.30 points.
Vinod Nair, Head of Research, Geojit Financial Services said, “ The bloodbath was seen in the global market as the fallout of Silicon Valley Bank followed by turmoil at Signature Bank, keeping investors worried about the strength of the U.S. banking system.”
“Importantly, the Fed’s decision in the upcoming meeting will have a crucial impact on the market sell-off, as the consensus is reversing to no rate-hike trajectory. Also, the U.S. inflation data, due on Tuesday, will have a vital impact in the short-term as the market anticipates a cool down from January levels,” he added.
Ajit Mishra, Vice-President, Technical Research, Religare Broking Ltd. said, “Markets fell in continuation to the prevailing trend. The selling pressure was widespread and the broader indices, too, plunged sharply lower and lost almost 2% each.”
“The move shows that participants are not comfortable, citing the U.S. banking crisis and reducing positions, ignoring the news of the bailout. Banking and financials were acting as saviours earlier but the tone has changed completely now, which is further adding to their worries,” he added.
