For the past couple of weeks, one can see the SVB bank abd Credit Suisse banks name at every nuke and corner. Both banks failed miserably and lost the trust of depositors for different reasons but due to this it created ripple effects across the globe and even Goldman sachs has given statement saying that probability of recession may increase by 30%.
If we talk about Indian economy, our Indian IT sector companies have some exposure to Credit Suisse but could not able to decode whether it will slash down the margins & profits by a large sum or not . Recently, Accenture has posted the results and commentary seems to be good along with that attrition rates have also fallen across the lines. If tech gaints like TCS and Infosys follows the same tune, we may not see any major impact in the IT sector.
Considering the health of Indian banks, numbers and NPAs clearly show that Indian banks are quite strong and may not see any risk of defaults or bank runs right now. Indian banks clean up has happened in the past, no more downside risk will be there with the banking sector in India. After recent announcement of removal of Indexation benefit from debt mutual funds, people are expecting the banks to grow its deposits since the funds will move from debt instruments to bank fixed deposits which adds postive factor to banks.
Indian economy or stock market as a whole may not see much ripple effects due to overall crisis in global level except for the fact that India will also face Inflatiion problem because of liquidity pump done by FED to save banks.
