Uday Kotak | Credit Suisse Crisis: Uday Kotak reacts to Credit Suisse crisis, says India can stand out in this turbulence

“Even as the global turmoil continues in financial markets, the macro factors are turning better for India. The current account deficit looks below 2.5% Fy 23, and going below 2% in Fy 24. Lower oil helps. If we walk our talk and navigate well, India can stand out in this turbulence,” the Kotak Mahindra Bank CEO tweeted on Thursday.

The long-brewing troubles at Credit Suisse Group AG exploded into a full-blown crisis on Wednesday as its stock and bonds cratered and some of the world’s biggest banks raced to shield their finances from the potential fallout, Bloomberg reported.

The stock fell as much as 31%, hitting record lows, and prices on its benchmark bonds sank to levels that indicate the Swiss lender is in deep financial stress something rarely, if ever seen at a major global bank since the throes of the 2008 crisis, the report further said.

Meanwhile, banks that trade with Credit Suisse snapped up contracts, known as credit-default swaps, that will compensate them if the crisis deepens, the report added.

The Swiss Market Index closed at 10,516.40, down by 1.87% or 200.32 points while Germany’s DAX plummeted nearly points or 3.27%.

Major frontline indices on Wall Street ended weak. While Dow 30 fell by 0.87% 280 points to close at 31,874.60, the S&P 500 finished at 3,891.93, lower by 27.36 points or 0.70%. Nasdaq Composite ended flat at 11,434.

On Thursday, Asian indices Nikkei 225 and Shanghai Composite were trading in the red. Meanwhile, the Indian stock market rebounded after opening in the red.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)