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Quote On Morning Market 16 March 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Bad news has shifted from the US to Europe. The refusal of Credit Suisse’s largest shareholder Saudi National Bank to infuse more equity sent the stock plummeting by 30% thereby impacting the European Bank Index which sharply corrected by 8.4%. Since all banks are interconnected, fears of banking contagion are impacting markets. It is important to understand a few facts. One, Credit Suisse has been going through problems for more than a year now. Other European large banks are strong. Two, the crisis in a few US regional banks are unlikely to impact the large US banks and the US financial system. The central banks, treasuries and Deposit Insurance Corporations are moving fast to contain the problem which is likely to be contained shortly. There are no serious fundamental issues like those during the 2008 financial meltdown. Investors should not panic and wait for this storm to pass. Safety is in fundamentally strong large caps.