Market Bizzz

Oil prices remained steady on Friday, but were preparing for their third consecutive week of losses as fears over a weakening US economy and declining Chinese demand hit the markets. Brent crude increased 0.2% to $72.64 a barrel, and US West Texas Intermediate was up 0.3% at $68.73 a barrel. Worries about a US regional banking crisis persisted after PacWest Bancorp confirmed that it plans to explore strategic options, causing concern in the wider market. Investors are now waiting for the release of US employment data that may indicate the state of the economy.

Shares in regional banks decreased, and fears about the health of US lenders intensified, sending Wall Street lower on 22 April. The KBW Regional Banking index fell by 3.5%, signalling the fourth consecutive day of declines on the S&P 500. The decline was triggered in part by the confirmation that PacWest Bancorp was exploring strategic moves, including a sale, which drove its shares down 51%. Toronto-Dominion Bank Group’s decision to abandon its $13.4bn acquisition of First Horizon Corp also fuelled concerns.

“Going ahead, the market may consolidate ahead of key US Fed and ECB policy meetings before resuming its upward journey. With results season picking up steam, stock-specific action is likely to continue,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Major U.S. stock indexes fell more than 1% on Tuesday as regional bank shares tumbled and investors awaited the Federal Reserve’s decision about interest rates. The KBW regional banking index fell 5.5% in its biggest daily percentage drop since March 13, while S&P 500 energy and financial sectors fell 4.3% and 2.3% respectively.

Steel major Tata Steel Ltd reported consolidated net profit of Rs 1,705 crore for the January-March period. This is a fall of 82% from Rs 9,756 crore a year ago.

In December, SUUTI held six lakh shares representing a 0.02% stake in the bank, which was down from 1.6% in September 2022. According to the stock exchange data, as of end-March 2023, the stake was down to zero. The derecognition as a promoter also takes away the right to appoint a nominee director on the bank’s board.