The Sensex plunged over 900 points to settle below 59,000 on Monday as domestic equity markets fell for the third straight day. The Sensex is at its lowest point in five months. The local market was negatively impacted by banks in the wake of Silicon Valley Bank’s (SVB) bankruptcy in the US. In America, a further bank has filed for bankruptcy. After Silicon Valley Bank, the news of Signature Bank’s demise has now surfaced. Although Silicon Valley Bank prospered as a result of significant investments in startups and bonds, Signature Bank faced danger as a result of significant exposure to the cryptocurrency industry. After Monday’s plunge, investors’ wealth decreased by more than Rs 4.43 lakh crore. The Sensex was unable to hold onto its early gains and eventually finished at 58,237.85, a loss of 897.28 points.

By September 2022, the crypto industry had deposited about one-fourth of the $103 billion total that had been placed in those institutions. In light of Signature Bank’s poor financial situation as a result of the decline in cryptocurrency, the Federal Deposit Insurance Corporation 5 has assumed control of the institution. The decision has been made to temporarily shutter the bank. The closure of Silicon Valley on Friday was followed by the bankruptcy of Signature Bank.