Market Bizzz

Stocks that were in focus include names like Gujarat Pipavav Port which rose nearly 2% to hit a fresh 52-week high, Sun Pharma Advanced Research which tumbled over 5% to a fresh 52-week low and Hindalco which pared gains but closed in the green on Wednesday.

They said the bank could access liquidity from the central bank if needed. The moves follow the collapse of U.S. lenders Silicon Valley Bank and Signature Bank in recent days which have sent financial markets on a roller-coaster ride.

The stock has outperformed the Nifty50 over a 12-month period giving returns of more than 34% against 2.6% returns given by Nifty50 and negative 11% returns given by the Nifty Small Cap 100 according to a data sourced from Trendlyne. The stock is a constituent of Nifty Small Cap 250.

In the last month, the price has once again moved in the range of Rs 2,125-2,250 odd level and in the current week with relatively high volume the price broke the range and closed below the Rs 2,125 odd level.

As recently as last week, markets were braced for the return of large Fed hikes but the swift collapse of SVB has changed those expectations, with market pricing in an 80% chance of a 25 basis point hike next week.

The sudden shutdown of SVB Financial triggered concerns about risks to other banks resulting from the U.S. Federal Reserve’s sharp interest rate hikes over the last year. It also spurred speculation about whether the central bank could slow the pace of its monetary tightening.

“There is escalating tensity in the global financial world; this is despite non-U.S. banks’ exposure to US regional banks being minimal, with the global systems being well capitalized and flush with liquidity,” said Stephen Innes, managing partner at SPI Asset Management.

“And that argument applies not just to the U.S., but around the globe … Regardless of the fact that the authorities in the U.S. have provided that security assurance that depositors will be ok, investors don’t know if they’re going to be ok, and therefore they’re running for the door.”