Though the SVB & Credit Suisse crises have eased, the market lacks the confidence to hold positions on contagion fears, maintains analyst
The 30-share BSE benchmark Sensex rose 79 points or 0.14% to settle at 57,635. The broader NSE Nifty surged 13 points or 0.08% to end at 16,985.
From the Sensex pack, Nestle, Titan, Asian Paints and HUL closed with over 2% gains. Sun Pharma, SBI, Tata Motors, Power Grid and Bajaj Finserv also rose.
On the other hand, Tata Steel, IndusInd Bank, Bharti Airtel and Infosys reported losses.
Sector-wise, Nifty media advanced 4.16% and Nifty FMCG gained 1.14%. Nifty Bank and Nifty Financial Services also closed higher. In the broader market, Nifty Midcap50 rose 0.52%, while Smallcap50 plunged 0.38%.
“With the turbulence at Credit Suisse and ahead of the ECB policy announcement, investors’ attention has switched to developments in the European market. Consistently unfavourable signs in global markets are encouraging investors to move to safe havens such as the dollar and gold, while FIIs are withdrawing funds from the domestic market in response to the Indian rupee’s depreciation,” said Vinod Nair, Head of Research at Geojit Financial Services.
Though the SVB & Credit Suisse crises have eased, the market lacks the confidence to hold positions on contagion fears, added Nair.
Asian markets slid on Thursday with contagion fears hitting banks but European equities rallied after troubled banking giant Credit Suisse said it had taken a huge loan from the Swiss central bank.
Credit Suisse later announced it would borrow nearly $54 billion to support the group. The news sent shares in the firm surging 32% at the start of business Thursday.
Meanwhile, Hong Kong gave up 1.7%, while Tokyo, Sydney, Shanghai, Seoul, Singapore, Bangkok, Taipei, Manila and Jakarta were also down.
Crude price rises
Oil prices clawed back some ground on Thursday after sliding to 15-month lows in the previous session as markets calmed to some extent after Credit Suisse was thrown a financial lifeline by Swiss regulators.
Brent crude futures were up 78 cents or 1.06% to $74.47 per barrel. West Texas Intermediate crude futures (WTI) rose 0.70 cents or 1.04% to $68.31 a barrel.
The rupee weakened 0.17% versus the dollar, and quoted at 82.73 per dollar, as concerns over a European lender dented broader risk sentiment.
The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declining 0.21% to 104.42 level.
(With inputs from agencies)
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