Outcry in the stock market due to the Silicon Valley bank crisis

Mumbai (U)The Hindu News): The domestic stock market fell by more than 1.5 per cent today due to all-round selling at the local level under the pressure of a weak trend in the global market due to the failure of America’s Silicon Valley Bank (SVB).

BSE’s 30-share sensitive index Sensex dived 897.28 points, or 1.52 per cent, to fall below the psychological level of 59 thousand points to hit a five-month low of 58237.85. Earlier it was at 57919.97 points on 14 October 2022. Similarly, the Nifty of the National Stock Exchange (NSE) was at 17154.30 points, a major decline of 258.60 points, or 1.49 percent.

During this, there was heavy selling in medium and small companies of BSE. Due to this, the midcap fell 1.82 points to 24,169.74 points and the smallcap fell 2.08 percent to 27,371.95 points. A total of 3757 companies were traded on the BSE, out of which 2838 were sold, 766 were bought and 153 remained unchanged. Similarly, 45 companies declined in the NSE while four remained on the rise while one remained stable.

According to market analysts, the Silicon Valley Bank failed on March 10 of this year. It is considered the biggest banking failure since the 2008 financial crisis and the second biggest in US history. The biggest impact of the SVB crisis has been on startups. Many startups are not even able to withdraw their deposits from the bank.

Due to the SVB effect, the investment sentiment of the investors towards the market collapsed. Due to this, all 20 groups of BSE registered a huge decline. During this period, the shares of the banking group suffered the maximum loss of 2.24 per cent. Similarly Commodities 1.59, CD 1.89, Energy 0.96, FMCG 0.95, Financial Services 1.93, Healthcare 0.67, Industrials 1.73, IT 1.22, Telecom 2.08, Utilities 0.03, Auto 2.00, Capital Goods 1.53, Consumer Durables 1.44, Oil & Gas 0.9 0.68, Power 0.12, Realty 1.98, Tech 1.49 and Services group shares fell 1.82 percent.

Global market trend remained weak. During this period Britain’s FTSE 2.00, Germany’s DAX and Japan’s Nikkei fell 1.11 percent. However, Hong Kong’s Hangseng gained 1.95 and China’s Shanghai Composite gained 1.20 percent.

In early trade, the Sensex opened at 59,033.77 points, down 101 points, but due to strong buying, it reached an all-time high of 59,510.92 points shortly afterwards. After this, under the pressure of selling, it rolled down to a low of 58,094.55 in the last phase of the continuous falling business. It finally closed at 58,237.85, down 1.52 per cent from the previous day’s 59,135.13.

At the same time, the Nifty opened nine points higher at 17,421.90 points and during the session remained at the highest level of 17,529.90 points and also at the low level of 17,113.45 points. It finally closed at 17,154.30, down 1.49 per cent from 17,412.90 in the previous session.

During this period, 29 Sensex companies declined except Tech Mahindra’s 6.83 percent storm. Major losers were IndusInd Bank 7.46, SBI 3.21, Tata Motors 3.06, Mahindra & Mahindra 2.57, Bajaj Finserv 2.47, Axis Bank 2.29, Infosys 2.07, ICICI Bank 1.82, Reliance 1.65, HCL Tech 1.63, TCS 1.46, HDFC Bank 1.26 , Tata Steel 1.11, LT 1.00, Wipro 0.75, Maruti 0.73, NTPC 0.64 and Sun Pharma 0.16 per cent.