Weekly movers: Hits and misses in the large cap space during the week!

Here’s a list of the top 5 gainers and losers this week in the large-cap space.

Since the last one-week, dark clouds have been looming over the banking sector. It all started with the US-based Silicon Valley Bank, which, announced a USD 1.75 billion capital raising on 08 March. It told investors it needed to plug a hole caused by the sale of its loss-making bond portfolio. Soon, it became known that the bank was in deep financial crisis.

Word spread like fire, and panicked depositors rushed to withdraw funds from the bank. This resulted in a cascading effect, and eventually, the bank collapsed. Now, it was the turn of Signature Bank. Spooked from the SVB collapse, depositors rushed to withdraw their funds en-masse. Unable to withstand this sudden large-scale demand, the Signature bank, too, collapsed. 

Next came the Credit Suisse Bank. The bank’s shares fell by 30% after Saudi National Bank (SNB), one of the top shareholders of Credit Suisse, refused to infuse more funds in the bank owing to its regulatory policies. To give a brief background, SNB can’t hold more than 10% stake in Credit Suisse. The former currently holds 9.9% stake in the latter. As per the latest news, Swiss National Bank has come to the rescue of Credit Suisse Bank, by agreeing to provide funding to Credit Suisse.

These incidents sent tremors across the banking sector globally. Indian stock markets were no exception. In last 1 week, S&P BSE Bankex plunged by more than 3.5%. Unsurprisingly, 4 out of 5 top losers this week are banks.

Let us have a look at the top gainers and losers in the large-cap space during the last 5 trading sessions (between 10 March and 16 March).