US bank crisis - Is it a blessing in disguise for Indian traders ?
As per the synopsis published in Economic times by Nikhil Agarwal : The SVB ( Silicon Valley Bank) episode has sparked fears of a financial crisis leading to a drop in crude oil price. While WTI sank to its lowest level since December, Brent dipped to its lowest level since early January. As India imports most of its oil requirements, a fall in crude oil rates is seen as a positive for India
With FIIs pulling out more dollars from India after back-to-back collapse of three US banks, including Signature and Silvergate, Sensex down nearly 2,500 points in 4 days. Experts and analyst believe that there are no reasons to worry about the Indian Equity market. Rather there are few good reasons to understand, why Indian equity market may see a bull run from here ??
Fed may stop their interest rate rise trend; and there are fare chances that they will cut the rate. Even a neutral behaviour by Fed in their next monetary policy will trigger the bulls in Indian market with a hope that FIIs inflow will increase
The SVB crisis has hit the crude prices. Since India is a large importer of crude, this fall in price may help us to post a healthy export - import balance. This is going to help us on macro basis
The current crisis has shaken the US bond market also; it has fallen from its peak in last few days. The falling Bond yield in US will help the Indian Equity market attract more FIIs money
There are many more reasons as quoted by experts in different blogs and articles, which confirms that the SVB crisis has affected the world as a whole, but India is luckily placed in a advantageous position. There could be some contrarian views from the camp of 'bears' and they may debate against the bullish reasons as quoted above. But that's what stock market is all about - Fear & Greed !
You have to decide your side on the basis of your Risk appetite and the investment tenure ! Our house view is bullish and we see this current scenario as an excellent opportunity to make money
Disclaimer : The views presented above are the personal view of the author and is not a suggestion or recommendation for any stock or product. The author is open to receive any feedback on this article at help@infirupee.com
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