Indian stocks in green with focus on US monetary policy outcome

Global stocks have been volatile for over a week after the Silicon Valley Bank-led crisis in the US banking system

Benchmark stocks in India closed Tuesday's trade in the green tracking positive overnight gains in the US, which rose on hopes of a relatively smaller interest rate hike in the ongoing two-day US monetary policy review meeting amidst the banking crisis.

The US monetary policy review meeting is scheduled for March 21-22. Sensex and Nifty settled 0.7-0.8 per cent higher than the previous session, with most of the Nifty sectoral indices on the rise.

"Investors hoped for less-aggressive moves by the U.S. Federal Reserve at its policy meeting this week. Although it's probably too early to call an end to the banking turmoil, given difficult conditions still exist for the smaller U.S. banks...," said Deepak Jasani, Head of Retail Research, HDFC Securities.

Global stocks have been volatile for over a week after the Silicon Valley Bank-led crisis in the US banking system and contagion effect on some others in a matter of just a week. 

Prominent global lender in the world of technology startups, the Silicon Valley Bank collapsed on March 10 after a run on the bank, forcing the US federal government to step in. Regulators shut down the tech lender and put it under the control of the US Federal Deposit Insurance Corporation (FDIC).