Indian shares were set to open higher on Monday after reports of advanced talks for an acquisition of Silicon Valley Bank brought relief to markets, but fears of contagion in the global banking system lingered, putting authorities on high alert for the fallout from recent turmoil at banks.
India's NSE stock futures listed on the Singapore exchange were up 0.48% at 17,000 as of 8:25 a.m. IST. The broader Asian equity indexes were subdued. U.S. futures were higher on Monday on hopes of acquisition of the embattled Silicon Valley Bank by First Citizens BancShares Inc.
Concerns over credit crunch gripped Europe and the U.S. with Federal Reserve and European Central Bank officials keeping a close watch on the impact of banking stress on credit crunch.
Shares of Deutsche Bank fell over 8% on Friday, after its
credit default swaps, which reflect the cost of insuring debt
against risk of non-payment, rose to highest in over four years.
Analysts said that if credit default swaps do not normalise, it
will add to pressure on markets.
The Nifty 50 fell for the third consecutive week on Friday,
after the government hiked securities transaction tax (STT) on
futures and options.
Analysts expect lack of buying across the spectrum to continue in a sideways market with negative bias. Meanwhile, foreign institutional investors (FIIs) extended selling streak on Friday, offloading 17.20 billion Indian rupees of equities.
Stocks to Watch:
** Sun Pharma : Co enters into an agreement to
acquire 60% stake in Vivaldis Health and Foods for 1.43 billion
Rupees.
** Bharat Electronics : Co wins order worth 43
billion Rupees from Indian Army and Indian Navy.
** Paytm : Co wins regulator extension for payment
aggregator license application.
** Alembic Pharma : U.S FDA issues Form 483 with
two minor procedural observations after inspection at company's
Gujarat facility. ($1 = 82.1970 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru)
