Indian shares hit 5-month low as banks drag; await inflation data

Indian shares have hit a five-month low, pulled down by a fall in financial stocks prompted by Silicon Valley Bank\’s collapse. The Nifty 50 dropped 1.5% to 17,154.30, while Sensex slid 1.52% to 58,237.85. Easing fears of contagion, further rate decisions are due by several central banks, and US authorities have announced plans to limit effects of the SVB collapse. A Reuters survey of 43 economists indicated that retail inflation data for February are expected to show levels at 6.35%, down from 7.59% a year before, but still above the RBI’s upper threshold for the second month running. Despite the potential effects of the US Federal Reserve’s March rate hike, which is now judged to have an 80.4% chance of a 25-basis point increase, analysts predict that there will not be a ripple effect on the Indian financial system from the SVB crisis.



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