Sensex Plunges 800 Points As Credit Suisse Takeover Fails To Calm Nerves.

Last updated on June 21st, 2023 at 01:30 pm

The Sensex, India’s benchmark stock index, plunged 800 points as Credit Suisse’s takeover failed to calm investors’ nerves. Despite reports that UBS was buying Credit Suisse for $3.25 billion, Asian markets and the Sensex fell, with the Bank Nifty leading declines. Adani Enterprises, Apollo Enterprises, Hindalco, and JSW Steel were among the losers in trade, while BPCL, HUL, ONGC, and Dr. Reddy’s Labs were among the gainers. Global markets have been in turmoil, dragging Indian indices lower as well. Swiss authorities pushed for UBS to take over Credit Suisse after a plan for Credit Suisse to borrow up to USD 54 billion failed to reassure investors and the bank’s customers. The deal was seen as crucial for the stability of international finance, according to Swiss President Alain Berset.

Despite the buyout orchestrated by Credit Suisse’s authorities, jitters in global stock markets, including India, persisted. At 1.30 pm, the Sensex was down a massive 747 points, while the Nifty dropped 222 points. Even as Asian markets failed to stage any recovery, Europe opened slightly lower, with the German DAX down 0.50%. As many as 122 stocks dropped to 52-week lows, according to data by the National Stock Exchange.

The market outlook is uncertain, with short-term pullbacks expected as lower US PPI inflation and slower US retail sales data has led to the hope of a lower 25 bps rate hike in the Fed policy meet next week. Global markets have been in some sort of turmoil lately, dragging Indian indices lower as well.

In conclusion, the news of UBS’s buyout of Credit Suisse failed to calm investors’ nerves, resulting in the Sensex’s significant decline. The market outlook is uncertain, with short-term pullbacks expected due to lower US PPI inflation and slower US retail sales data.