Investors feared for the health of US banks after the failure of SVB and this will continue to have an effect on Indian banking stocks as well. The US jobs report data had eased some concerns that the Fed could raise rates steeply at its March meeting after hawkish remarks from Fed Chair Powell this week.
Global market update: SGX Nifty to SVB crisis — top triggers that may dictate Dalal Street today
On account of Silicon Valley Bank (SVB) crisis, Wall Street crashed on Friday logging its worst week since September 2022. The SVB crisis led to huge weakness in US dollar rates as Dollar Index came below 104 levels in early morning session on Monday. Meanwhile, SGX Nifty today has once again opened with downside gap, which signals weakness on Dalal Street in early morning deals.
Here we list out key global market triggers that may dictate India’s stock market today: (Read More)
Stocks to Watch: Adani Group, Infosys, Vedanta, Hindustan Zinc, LIC, M&M, Yes Bank, Dish TV, Godrej Industries, Sula Vineyards, and Nazara Technologies
Balrampur Chini and Gujarat Narmada Valley Fertilizers & Chemicals Ltd are the two stocks that are a part of the F&O ban list for Monday trading. (Read More)
Nazara Tech says two step-down subsidiaries hold cash balance of ₹64 cr at Silicon Valley Bank
Nazara Technologies, a diversified gaming and sports media platform, on Sunday said two of its step-down subsidiaries hold cash balances of around ₹64 crore at the Silicon Valley Bank.
On Friday, the dramatic collapse of the Silicon Valley Bank – the default bank for many high-flying startups and described as a linchpin of tech investing – roiled global markets, as it marked the largest bank failures since the 2008 global financial crisis.
Nazara Technologies, in a regulatory filing, said both subsidiaries – Kiddopia Inc and Mediawrkz – continue to be well capitalised and are generating positive cash flows along with profitability. Hence, Nazara Technologies said, it expects no impact on its day-to-day operations, business performance and growth plans due to the SVB event.
It further asserted that Nazara Group (Nazara Technologies Limited and its subsidiaries) continues to maintain healthy reserves of cash and cash equivalents in excess of ₹600 crore excluding the SVB-impacted funds. (PTI)
India’s Inflation Seen Staying Above RBI’s 6% Target in February
India’s retail inflation probably breached the central bank’s target for a second straight month in February, prompting the monetary authority to possibly hike borrowing costs to the highest level in seven years.
Consumer prices rose 6.40% last month from a year earlier, according to the median estimate in a Bloomberg survey of economists ahead of data due Monday at 5:30 p.m. local time. That would be slower than 6.52% in January but still above the comfort level of the Reserve Bank of India, which aims to bring inflation closer to the mid-point of its 2%-6% target.
Price pressures resurfacing after easing below 6% in the last two months of 2022 will likely convince RBI to increase the benchmark rate for a seventh straight time when it meets on April 6, according to Rahul Bajoria, an economist with Barclays Plc. Risk of heat waves “may raise concerns about food production and prices,” he added. (Bloomberg)
Buy or sell: Vaishali Parekh recommends 3 stocks to buy today
Vaishali Parekh has recommended three stocks to buy today, here we list out important details in regard to those day trading stocks:
1] JSW Steel: Buy at ₹679, target ₹704, stop loss ₹669;
2] RCF: Buy at ₹102, target ₹107, stop loss ₹100; and
3] Kaynes Technology: Buy at ₹956, target ₹990, stop loss ₹940. (Read More)
Infosys’ Mohit Joshi quits as president, to join Tech Mahindra this December
Infosys on Saturday announced the resignation of President Mohit Joshi. Its rival company, Tech Mahindra, informed that Joshi will join as managing director and chief executive officer of the company from December 20 this year.
According to Infosys’ statement, Joshi will be on leave with immediate effect and his last date with the company would be June 9 this year. The board of directors placed on record their deep sense of appreciation for the services rendered by Mohit Joshi and for his contributions to the company.
Meanwhile Tech Mahindra today said Joshi has been appointed as managing director and chief executive officer of the company and key managerial personnel for a period of five years with effect from December 20, 2023. It also said that the company will appoint Mohit Joshi as a director on the board of directors of the company. However, it also said it will be subject to approval by the shareholders of the company. (ANI)
Yes Bank stocks may face mass selling as 3-yr RBI-mandated lock-in ends on Monday
Shares of Yes Bank may face selling pressure as the Reserve Bank-mandated three-year lock-in period for individual investors and exchange-traded funds is ending on Monday, according to analysts.
The analysts expect distress on the bank counter on Monday as they expect investors, primarily the nine banks led by State Bank, which picked up almost 49 per cent of its stocks in March 2020 for ₹10 per share — at a premium of ₹8 on the face value as part of the RBI bailout, making an exit.
Exchange-traded funds are also likely to press the exit button.
Together, as much as 1.35 billion shares are with individual investors — including retail, HNIs and NRIs — under the lock-in and another 67 million with exchange-traded funds, and all these are likely to exit if not at one go over the next few weeks, according to analysts. (PTI)
SVB crisis to impact over 10,000 startups, trigger 1 lakh layoffs: Y Combinator
In a petition to the US government on Sunday, Y Combinator stated that around 10,000 small businesses with accounts in Silicon Valley Bank may be unable to pay their employees in the next 30 days, and approximately 1 lakh jobs are anticipated to be affected as a result of the collapse. The petition submitted to US Secretary of the Treasury Janet Yellen noted that one-third of the startups in Y Combinator’s community use Silicon Valley Bank as their only account.
“By that measure, we can estimate that payroll-related furlough or shutdown will impact more than 10,000 small businesses and startups. If the average small business or startup employs 10 workers, this will have an immediate effect of furlough, layoff, or shutdown, affecting over 100,000 jobs in the most vibrant sector of innovation in our economy,” the petition said. (Read More)
LIC MD Siddhartha Mohanty given 3 months charge as chairman from March 14
Siddhartha Mohanty, MD of Life Insurance Corporation (LIC) has been given a 3-month charge as chairman, from March 14. Moreover, the insurance juggernaut claims that MR Kumar, the current chairman of the LIC, has not received an extension.
This is an interim arrangement in addition to Mohanty’s own duties.
The authorities appointed Siddhartha Mohanty, the managing director (MD) and chief executive officer (CEO) of LIC Housing Finance, as the MD of Life Insurance Corporation (LIC), India’s largest insurer, effective February 1st, 2021. In place of TC Suseel Kumar, who was scheduled to retire on January 31, 2021, Siddhartha Mohanty was nominated to serve as the MD of LIC until his superannuation on June 30, 2023. (Read More)
Lenders lower rates as home loan growth dips
Banks and home financiers are offering special rates before the financial year-end to lure customers amid sluggish demand, as recent interest rate hikes have made home purchases costly.
State Bank of India (SBI), for instance, is offering a home loan rate of 8.5% for customers with a credit score of above 750. Similarly, Housing Development Finance Corp. (HDFC) is offering 8.7% to customers with a credit score of above 760. Last week, Bank of Baroda slashed home loan rates by 40 basis points to 8.5% and waived the processing charges on such loans. (Read More)
Adani Group fully prepays $2.65 billion share-backed financing
Gautam Adani-led Adani Group on 12 March said that it has completed full prepayment of margin linked share backed financing aggregating to $2.15 billion, ahead of its committed timeline of 31 March 2023.
This latest development arrived two days after the Financial Times report, which suggested Adani group was mulling issuing a formal request to global lenders to sell a 4-5 per cent stake in Ambuja Cement for $450 million to reduce debt.
Apart from this, the firm said that promoters have also prepaid $500 million facility taken for Ambuja acquisition financing. (Read More)
Wall Street sinks on Friday on jitters about banks after mixed jobs report
Wall Street’s indexes ended down more than 1% on Friday after investors ran for the exits as they feared for the health of U.S. banks after the failure of a high-profile lender to the technology sector, overshadowing the February jobs report.
California banking regulators said they closed SVB Financial Group to protect deposits in what was the largest bank failure since the financial crisis. A capital crisis at SVB had already put pressure on bank stocks globally.
SVB had tried but failed to shore up its balance sheet through a stock sale proposed late on Wednesday. The same day, crypto-lender Silvergate Capital said it would have to wind down after huge losses from the FTX cryptocurrency exchange collapse.
The Dow Jones Industrial Average fell 345.22 points, or 1.07%, to 31,909.64, the S&P 500 lost 56.73 points, or 1.45%, to 3,861.59 and the Nasdaq Composite dropped 199.47 points, or 1.76%, to 11,138.89.
All 11 S&P 500 industry sectors lost ground. Real estate, down 3.3%, led declines while consumer staples the top performer, fell just 0.5%.
Investors had expected to end the week with most of their focus on economic data rather than banks.
Before the market opened, the closely monitored non-farm payrolls report showed the U.S. economy added more jobs than expected in February while average hourly earnings rose at a slower 0.2% last month versus 0.3% in January while unemployment rose to 3.6%.
The data had eased some concerns that the Fed could raise rates by 50 basis points at its March meeting after hawkish remarks from Fed Chair Powell this week. (Reuters)
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