Due to the earthquake in the US banking and financial sector, there has been a big decline in the Indian banking sector since March 8. By March 14, the Bank Exchange has seen a decline of 2,403.18 points on the Bombay Stock Exchange.
Moody’s Investors Service
Moody’s Investors Service Has changed its outlook on the US banking system from stable to negative on Tuesday. This step has been taken by Moody’s at a time when America’s banking system is in shambles and America’s economy (US Economy) But the clouds of crisis are looming. Because of which further decline can be seen in banking and financial stocks in the US stock market.
If this happens then India’s banking sector (Indian Banking Sector) But also a clear effect can be seen. Ever since the news of Silicon Valley Bank and Signature Bank has come, Indian stock markets have witnessed a decline of more than 2000 points in the banking sector. Even there has been a decline of about 7 percent in the shares of three big public sector banks of the country.
Moody’s changed the outlook on the US banking sector
Moody’s rating agency said the closure of Silicon Valley Bank, Silvergate Capital Corp and Signature Bank worsened the operating environment for the banking sector, which is now grappling with a crisis of confidence among both investors and depositors. Lenders who had “substantial” unrealized security losses and uninsured deposits may suffer higher losses. Customers are now looking for safer options to park their funds. Moody’s also expects the Federal Reserve to continue tightening monetary policy, in contrast to some others who are expecting a collapse of the bank this month to reshape the trajectory for interest rate hikes. .
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How much loss has been done in the Indian banking sector
Due to the earthquake in the US banking and financial sector, there has been a big decline in the Indian banking sector since March 8. By March 14, the Bank Exchange has seen a decline of 2,403.18 points on the Bombay Stock Exchange. This means that the bank exchange has fallen by more than 5 percent. On the other hand, the Bank Nifty on the National Stock Exchange has declined by 2200 points during this period. Bank Nifty has also declined by more than 5 percent.
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Shares of Indian banks also declined
No less effect has been seen in the shares of Indian banks. Till March 14, an average decline of 7 per cent has been seen in three public sector banks of the country. Shares of State Bank of India have fallen by 7 per cent. Shares of Punjab National Bank fell by 6.50 per cent and Bank of Baroda shares also fell by 6.66 per cent. On the other hand, since March 8, the share of private bank HDFC Bank has fallen by 4.05 per cent and during this period, the share of ICICI Bank has seen a decline of 4.78 per cent.
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Moody’s move may worsen the sentiment
Moody’s has also worsened the sentiment by negativening the outlook of the US banking sector. This step of the rating agency can see a decline in the US stock market and its effect can also be seen in the country’s stock market and banking sector. Indian corporates and startups get a lot of money from US banks and there is a lot of trade between US banks and Indian banks. The sinking of such US banking system is not good at all for the Indian banking sector.