The domestic equity indices extended their downfall and hit fresh intraday low in afternoon trade. The Nifty currently traded below the 17,250 mark after hitting the day's high of 17,529.90 in early trade.
At 13:36 IST, the barometer index, the S&P BSE Sensex, was down 691.1 points or 1.17% to 58,444.03. The Nifty 50 index lost 188.25 points or 1.08% to 17,224.65.
The broader market underperformed the headline indices. The S&P BSE Mid-Cap index shed 1.28% while the S&P BSE Small-Cap index fell 1.53%.
Sellers outnumbered buyers. On the BSE, 822 shares rose and 2,685 shares fell. A total of 153 shares were unchanged.
Over the weekend, U.S. regulators announced plans to backstop both depositors and financial institutions associated with Silicon Valley Bank (SVB). The US regulators on Sunday (12 March) night cleared a plan for the Silicon Valley Bank to protect depositors and assured that no losses would be borne by the taxpayers.
After SVB's downfall, New York-based Signature Bank was closed by New York state financial regulators on Sunday. Signature had been a popular funding source for cryptocurrency companies.
Depositors at both failed SVB and Signature Bank in New York, which was shuttered Sunday over similar systemic contagion fears, will have full access to their deposits as part of multiple moves that officials approved over the weekend. Depositors at the bank will have access to their money from Monday.
Today, London-based HSBC announced an agreement with the Bank of England to buy the U.K. operations of Silicon Valley Bank for 1 euro.
"The Bank and (His Majesty's Treasury) can confirm that all depositors' money with SVBUK is safe and secure as a result of this transaction," the Bank said in a joint statement with the Treasury. "SVBUK's business will continue to be operated normally by SVBUK. All services will continue to operate as normal and customers should not notice any changes."
Back home, consumer inflation data for February will be unveiled today, 13 March 2023. The annual consumer price inflation in India accelerated to 6.52% in January of 2023, the highest in three months, compared to 5.72% in December.
Stocks in Spotlight:
Nazara Technologies slipped 3.08%. Two of Nazara Technologies (Nazara) step down subsidiaries Kiddopia Inc and Mediawrkz Inc hold cash balances at Silicon Valley Bank (SVB), which is currently under the receivership of the Federal Deposit Insurance Corporation (FDIC). The balances held at SVB by Kiddopia Inc. and Mediawrkz Inc cumulatively account for $7.75 million (about Rs 64 crore).
Tech Mahindra surged 7.99% after the company announced Mohit Joshi, the former president of Infosys, as its managing director (MD) and chief executive officer (CEO) designate for a period of five years, effective from 20 December 2023. Mohit Joshi will take over as MD & CEO when CP Gurnani retires on 19 December 2023. However, he will join Tech Mahindra well before that date to allow for sufficient transition time, said the company.
JSW Steel rose 0.63%. The company on Friday (10 March 2023) announced that its wholly owned subsidiary, JSW Steel Coated Products (JSWSCPL), has acquired 31% stake in Ayena Innovations.
Capacite Infraprojects informed that the company has received sanction for non-fund based limits totalling to Rs 150 crore from State Bank of India which is also the consortium leader. Capacite Infra further stated that it is also engaging with other consortium members for sanction of balance assessed limits. It is hopeful that the other consortium members will also take up their part of assessed limits shortly. The limits will help us in realising our pending receivable in the form of retention monies and mobilisation advance from the existing on-going projects, the company said in a statement.
Finolex Industries announced that it has commenced commercial operations of polyvinyl chloride (PVC) fittings at a new manufacturing facility in Pune, Maharashtra with effect from 12 March 2023.
Global Markets:
European markets declined while Asian stocks traded mixed on Monday as investors reacted to plans by the Bank of England and the US Federal Reserve to backstop both depositors and financial institutions associated with Silicon Valley Bank (SVB).
SVB last week was shuttered by regulators, after customers withdrew a staggering $42 billion of deposits by the end of Thursday.
After SVB, US State regulators closed New York-based Signature Bank on Sunday, making it the third largest failure in U.S. banking history.
All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the U.S. Treasury Department and other bank regulators said in a joint statement.
US stocks closed sharply lower on Friday over fears of contagion in the financial sector and strong February employment data showing that the economy added more jobs than expected.
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