Nifty Cuts Losses, Ends The Day Down By 111 Points

Benchmark indices cut losses towards the last 30-minutes of trade, as buying was seen at lower levels. The Nifty ended the day lower by 111 points, after falling as much as 265 points at what point in the morning. There was some recovery seen in losses on the Dow Futures, while Europe too was seeing small cuts.

Declines across global markets have come following a collapse of some banks and crises at others. In the latest, shares of Credit Suisse plunged 63 per cent in early trading Monday after the announcement that banking giant UBS would buy its troubled rival for almost USD 3.25 billion in a deal orchestrated by regulators to stave off further market-shaking turmoil in the global banking system.

UBS shares were down 14 per cent in early trading on the Swiss stock exchange. The German DAX was trading with losses of 0.40%, while the French CAC was trading with losses of 0.30%. The declines across Europe came despite UBS agreeing to buy Credit Suisse as part of a cut-price deal in an effort to stem the risk of contagion to the global banking system.

Bank home stocks from the Bajaj group saw some selling pressure with Bajaj Finserv and Bajaj Finance among the losers. Adani Enterprises saw its share prices fall by nearly 4%, while Hindalco and Wipro were the other losers in trade. Among the gainers in trade were HUL, BPCL, ITC and Grasim Industries.

The next big event for the markets would be the US Fed decision on interest rates due on Wednesday. There is a probability that the US Fed would hike interest rates by 25 basis points, as against the anticipation of 50 basis points.