On February 14, for the second consecutive day, about 10 lakh crore rupees of investors were drowned in the storm of selling in the equity market. Fears of Russia’s attack on Ukraine, a jump in crude oil prices and a fall in global markets have created a lot of panic among investors. On Monday, the equity benchmark index was down nearly 3 per cent, as against 1.3 per cent fall in the previous session. Today the Sensex fell 1,747 points to 56,406 and Nifty50 lost 532 points to close at 16,843.
With this fall, the benchmark index continues to decline in 2022, while last year the index gave a return of 22 per cent.
market is falling due to these reasons
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The uncertainty is high. If the Ukraine crisis turns into a war, it could hurt the market significantly in the short term. In the event of an attack, Russia’s economy could weaken due to severe sanctions on Russia.
Sensex has lost 4818 points in a month, how long will the fall continue?
Strong beating of midcap and smallcap
The broader market also declined on the lines of the main index. The Nifty Midcap 100 index lost 3.94 percent and the Smallcap 100 index lost 4.44 percent.
There was heavy selling in all sectors except IT and Pharma. IT declined only 0.25 per cent and pharma 0.73 per cent. Nifty Bank, Auto, Financial Services and Metal indices fell over 3 per cent.
Stock Markets: Sensex falls sharply amid Ukraine crisis, investors should keep an eye on these 5 factors
Investors lost around Rs 9.57 lakh crore in just two sessions. The market capitalization of BSE declined to Rs 258.24 lakh crore on Monday, as against Rs 267.81 lakh crore on February 10.
Sentiment will remain negative till Ukraine tension ends
Experts said that the sentiment could remain negative till the uncertainty surrounding the tension between Russia and Ukraine is over. Mohit Nigam, Head (PMS), Hem Securities, said: “Negative sentiments for a short turn dominated the markets due to Ukraine-Russia tensions, buoyancy in crude oil and the possibility of an interest rate hike by the US Fed.” He added that the current decline is due to the Ukraine Crisis and the market could bounce back strongly if the crisis subsides.
The entire Asian markets remained under pressure with Japan’s Nikkei weakening by 2 per cent. China’s Shanghai Composite, Hong Kong’s Handsang and South Korea’s Kospi fell up to 1-1.6 per cent. Earlier on Friday, there was a big fall in the US markets.
Disclaimer: The views and investment tips of investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises its users to consult certified experts before taking investment decisions.
,