US bank crisis: Banking sector mutual funds fall by six percent in a week
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Banking stocks declined by 3-13 per cent during the week under review. Experts, however, believe that its direct impact on the Indian banking sector is marginal. Mutual funds in the sector also declined due to continuous selling in bank stocks.
New Delhi. Mutual funds in the banking and financial services sector fell up to six per cent last week following the collapse of Silicon Valley Bank and Signature Bank in the US. The banking crisis in the US jolted the global financial system and weakened investor sentiment towards the banking sector in India as well. In such a situation, banking stocks declined by 3-13 percent during the week under review. Experts, however, believe that its direct impact on the Indian banking sector is marginal. Mutual funds in the sector also declined due to continuous selling in bank stocks.
According to data compiled by ACE MF NXT, all of the 16 mutual funds in the banking sector gave negative returns to investors in the range of 1.6 per cent to six per cent in the week ended March 17. Data shows these funds have given negative returns of eight per cent to 10 per cent so far this year. Funds which declined more than five per cent in the last week include Aditya Birla Sun Life Banking & Financial Services Fund, Tata Banking & Financial Services Fund, HDFC Banking & Financial Services Fund, LIC MF Banking & Financial Services Fund and Nippon India Banking Fund & Financial Services Fund.
FYERS Head of Research Gopal Kavalireddy said the ongoing volatility in the market and fears of a hike in interest rates led to the fall in these funds. Besides, foreign portfolio investors (FPIs) are offloading their investment holdings in several banks and financial sector entities, he added.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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