Bengaluru: Indian shares swung between gains and losses as one of Europe’s top lenders Credit Suisse added to concerns about the crisis in the financial sector.
The Nifty 50 index closed 0.08% higher at 16,985.60, while the S&P BSE Sensex gained 0.14% to close at 57,634.84. Both the benchmarks fell 0.7% during the session before reversing losses.
The Nifty 50 had declined 4.4% in the past five sessions, while the Nifty financial index slipped 5.3%.
The volatility index rose to 17.36, the highest since February 2, before closing above 16.2, a day after the Union Budget.
Ten of the 13 major sectoral indices advanced, higher-weighted financials, rising 0.31%.
Fast-moving consumer goods rose over 1% after analysts showed signs of improvement in rural growth, while metals declined over 2.5% on broader demand concerns and risk aversion.
Market sentiment was hammered by fears of a contagion across the global financial sector following the Credit Suisse hoax, which meant its stock plunged as much as 30% to a record low on Wednesday.
It jumped 24% on Thursday after Switzerland’s central bank announced borrowing of up to $54 billion. The news lifted European markets, which had rebounded from sharp losses in the previous session. [MKTS/GLOB]
There has been no material impact on Indian markets due to Credit Suisse, but the emotional impact is evident, said three analysts.
“Whenever a bank opts for emergency funding, it means things are really bad, because emergency funds are the last resort,” said Avinash Gorakshak, head of research at Profitmart Securities.
In individual stocks, Zee Entertainment jumped 9.34% following a report that the media company has agreed to repay $10 million dues to IndusInd Bank.
Titan jumped more than 2% after global brokerage firm JPMorgan named it a favorite discretionary play.
($1 = 82.8800 Indian Rupees)
(Reporting by Nishit Naveen and Bharat Rajeshwaran in Bengaluru; Editing by Savio D’Souza and Janane Venkataraman)
Disclaimer: This report is generated automatically from Reuters news service. ThePrint is not responsible for its content.