On March 7, the bears strengthened their hold on Dalal Street. With this, since the beginning of February till now, about 29 lakh crore rupees of investors have been sunk in the stock market.
Russia’s attack on Ukraine (Russia-Ukraine conflict) is now becoming a major threat not only to Moscow but to global growth, while there are also possibilities that America and its allies can do without disrupting global supply. Russia may also impose sanctions on the supply of oil and natural gas.
Brent crude at $139, 13-year high
Crude oil prices hit a 13-year high after this news, which is a big setback for emerging markets like India as India is dependent on imports for 80 percent of its oil needs. Every increase in oil prices is a big risk for India, as it raises concerns about inflation, increases trade deficit and takes a toll on corporate earnings and economic growth.
FIIs sell 2 lakh crore in Indian markets since October, but DIIs save market from major crash by buying
International benchmark Brent crude futures hit an intraday high of $139.13 at 1.14 pm on March 7, the highest level since 2008. At the same time, US crude reached the level of $130.
Why will India be shocked
Likita Shepa, Senior Research Analyst, CapitalVia Global Research, said, “Traders may be worried as India’s economic growth forecast for 2022 has been lowered to 7.8 per cent in a private assessment. The reason for this is attributed to the impact of the Russia-Ukraine conflict on exports as well as the rise in crude prices.
The rupee fell to a record low of 77.5 per dollar on Monday due to the crude oil crisis. “While the rupee may further weaken against the dollar, a rise in commodity prices may lead to inflation,” he said.
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Nifty broke the level of 16 thousand
Markets around the world are seeing weakness due to concerns related to the Ukraine Crisis. At around 3 pm, the BSE Sensex fell 1,518 points to 52,815, while the Nifty50 weakened by 400 points to remain around 15,840. Nifty has broken the 16,000 level for the first time since June 29 last year.
The market capitalization of BSE has come down from Rs 270.6 lakh crore to Rs 241.2 lakh crore since February 2 till date.
Auto, banking fell the most
There was weakness in the broader market as well. The Nifty Midcap 100 and Smallcap 100 indices declined 2.5 per cent and 2.2 per cent respectively.
Auto, banking, financial services and realty were the biggest hit, falling 4-5 per cent. On the other hand, the metal and IT indices continued to gain 0.1 per cent and 0.75 per cent, respectively, against the trend.
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