Sensex Loses 3000 Points Since March 8, As Global Banking Crisis Worsens

Benchmark indices have lost a whopping 3,000 points since March 8, 2023, when the Sensex was trading at 60,300 plus points. Today, the Sensex is at 57,226 points, which means a sharp fall of 3000 points. The fall has largely to do with the global banking financial crises, which first saw the collapse of Silicon Valley Bank, followed by Signature Bank. In the latest development we are now seeing Credit Suisse doing all it can to shore up finances.

Credit Suisse Group AG said it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank, in what it called "decisive action" to strengthen its liquidity, Reuters has reported.

The stock had dropped as much as 30% at one point in trade after a Reuters reports said that Saudi National Bank, could not provide the Swiss bank with any further financial assistance, sparking the latest downtrend.

Markets to remain weak

Domestic equities witnessed selling pressure for fifth consecutive day and as we write the markets are down once again. "Globally, investors remain cautious ahead of upcoming central bank meeting, although some relief was seen after US government's intervention to ease fears regarding ongoing banking crisis, coupled with the inline CPI inflation numbers. On Domestic front, Nifty closed below 17k zones after gap of five months, indicating the weak structure for the market. We expect market to remain in negative territory for next few days," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

IT and banking stocks would continue to lead losses an investors continue to worry over the banking sector. All eyes would now be on the US Fed meet slated for March 21-22, where the belief is that the US Fed would hold interest rates steady following the fast erupting banking crisis.