- Soaring tensions between Russia and Ukraine, inflation and an impeding fed rate hike have investors worried as stock prices are deep in the red.
- The Sensex has fallen by 1265 points or 2.18% in the last five days while the Nifty 50 index has fallen by 457 points or 2.63%.
- Foreign Institutional Investors are on a selling spree as they have already sold shares worth ₹2,261.90 crores in the Indian Capital Markets.
Soaring tensions between Russia and Ukraine, inflation and an impeding fed rate hike have investors worried as stock prices are deep in the red.
At 09:20 this morning, the BSE Sensex was at 56757.97, down 925.62 points or 1.60%, while the NSE Nifty index stood at ₹16,940.75 down ₹265.90 points or 1.55%.
Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine. Global equities have slumped, oil prices have reached a seven-year high and gold prices are on the rise reaching a nine-month high.
There is huge pressure on the Indian stock markets as SGX Nifty Futures were at 17,068 points. The Sensex and Nifty have logged their fourth straight session of losses on Monday as participants have remained cautious due to the tensions in Ukraine. The Sensex has fallen by 1265 points or 2.18% in the last five days while the Nifty 50 index has fallen by 457 points or 2.63%.
Anuj Gupta, Vice President at IIFL Securities said “After Russian President Vladimir Putin’s recognition of two breakaway regions of eastern Ukraine, stock market investors are advised to remain vigilant about further developments because there are chances of reciprocal action by the US and its allied countries. They also need to keep an eye on the shorter range of SGX Nifty, which is 16,800 to 17,380. SGX Nifty breaching its 16,800 support would mean further weakness in Indian stock market.”
“Mirroring the fall in SGX Nifty, key benchmark indices are seen trading in rough waters amid Russia-Ukraine tensions and the Fed’s hawkishness which is still reverberating negative sentiments. Overnight, MOEX Russia Index slumped as much as 14% after Russian President Vladimir Putin said he’s considering an appeal for official recognition from separatists in east Ukraine. Amidst this backdrop, Nifty’s resistance is at 17421 mark and expect waterfall of selling below 17057 mark,” Prashanth Tapse, Vice President (Research), Mehta Equities Ltd said.
“Escalations in Ukraine tensions with Russia recognising two pro-Russian rebel regions have aggravated the crisis. The economic consequences are already visible in higher crude and gold prices,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
The equity markets across the globe have been roiled as the crisis escalated when Putin on Monday recognised two breakaway regions in eastern Ukraine as independent and ordered the Russian army to launch what Moscow called a peacekeeping operation into the area.
There was a sharp cut in S&P 500 futures and Nasdaq futures as they fell by 1.5% and 2.2%, respectively. Major Asian markets are also down and have lost more than 2% in one day.
Foreign Institutional Investors are on a selling spree as they have already sold shares worth ₹2,261.90 crores in the Indian Capital Markets, as per exchange data and this has pushed Indian markets downwards.
Another reason for concern for the Indian economy is that Brent crude futures rose 4 per cent to $97.35, the highest since September 2014.
India has expressed deep concerns over the Russia-Ukraine issue and has said that the developments have the potential to undermine the peace and security of the region.
