Bank stocks can slide more; stay away for now: Analysts

Analysts expect the underperformance in bank stocks to continue ahead as the current fears around the banking sector globally are likely to persist for some time

The global turmoil in the banking sector has made analysts cautious, who advise that investors stay away from stocks of this sector till the overall sentiment improves. The recent trouble for the banking sector started with the collapse of US-based Silicon Valley Bank (SVB), Silvergate Capital and Signature Bank.

On its part, Moody’s Investors Service has also cut its outlook for the US banking system to ‘negative’ from ‘stable’, citing the run on deposits at these three banks that led to the collapse of these banking majors in less than a week.

Credit Suisse, meanwhile, got a $54 billion lifeline