Sensex plunged over 800 points in financial stocks

The BSE Sensex was down 1.4% at 58,309.51. (File)


Indian stocks fell more than 1% in choppy trade today, led by a fall in financial stocks, while the collapse of a Silicon Valley bank dampened sentiment.

The S&P BSE Sensex was down 1.4% at 58,309.51 as of 14:16 IST.

Meanwhile, US authorities on Sunday announced plans to limit the fallout from the collapse of Silicon Valley Bank (SVB), which will reduce the risk of contagion.

“The sell-off in the banking sector in India is not directly related (to SVB events), but now it can be said to be a sentimental effect,” said Anita Gandhi, director, Arihant Capital Markets.

Indian analysts do not expect the SVB crisis to affect the domestic financial system.

The SVB crisis will have almost zero impact on Indian banking, said Geojit Financial Services Chief Investment Strategist V.K. Vijayakumar said the markets are unlikely to be shaken for long.

Bank stocks fell 2.1%, and public sector banks fell 2.3%. Auto companies lost 2.2%.

IndusInd Bank Ltd was the top loser on the Nifty, also among bank stocks, down 7.6% after analysts said the RBI’s approval of the deadline for re-appointment of the private lender’s CEO fell short of its proposed deadline.

On the other hand, Indian IT services provider Tech Mahindra rose more than 10% after Infosys veteran Mohit Joshi was named as the new CEO following the retirement of incumbent CP Gurnani in December.

Meanwhile, Indian investors await data on retail inflation, which fell to 6.35% in February but was above the Reserve Bank of India’s upper limit for a second straight month, a Reuters poll of 43 economists showed.

Shares in Yes Bank Ltd fell 13% after the company said its three-year lock-up as part of a restructuring of the lender ended today.

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