Nifty Midcap 100 and Nifty Smallcap 100 are seen moving into the bearish zone. Along with weak global cues, even today they started with weakness. Significantly, on October 19, 2019, Nifty MidCap 100 touched a record high of 33,243.50, since then it has seen a decline of 20.18 percent. Similarly, Nifty SmallCap100 18 has registered a decline of nearly 21 per cent so far from its all-time high of 12,047.45 points in January 2022.
It should also be noted that a bear market is confirmed when an index breaks 20 percent or more from its recent closing high. Sensex and Nifty have also lost 15 per cent from their latest closing highs.
In today’s trade around 11.45 pm, the Nifty Midcap index was seen falling 2 percent at 26,966. At the same time, the Nifty Smallcap index was seen falling 1.7 percent at 9585. The reason for today’s fall in the market is the news in which the US and its allies are preparing to impose sanctions on Russian oil exports. Due to this news, the price of Brent crude went beyond $130 per barrel.
VK Vijayakumar of Geojit Financial Services It says that due to the ongoing war between Russia and Ukraine, there is a lot of turmoil in the commodity market. Crude has crossed $ 128 per barrel. This rapid increase in the price of crude can have a negative impact on global growth and inflation can be seen rising. Due to all this, the market seems to be going into bearish territory. So investors need to be cautious.
VK Vijayakumar It further said that in the current circumstances, it would be comparatively better to invest in energy stocks in the energy, metal and export related segments. It would be advisable to buy a small amount of good stocks related to these sectors.
Analysts say that the growing conflict in Eastern Europe and its impact on the global economy will have an impact on investor sentiment. Meanwhile, foreign investors are continuously withdrawing their money from the Indian market. FIIs have pulled out Rs 2 lakh crore from Indian markets since October. In the coming weeks, apart from the current geopolitical tension, investors will be watching the exit poll data for the state elections. Apart from this, Bank of England and US Fed will remain on the policy statement in the global market.
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Vinod Nair of Geojit Financial Services In the present conditions, the results of the state elections will not have any major and long-lasting impact on the market. Because of this, negative or positive reactions can be seen in the short term. Central banks may be seen reviewing their decision to hike rates due to conditions arising out of the ongoing fighting in Eastern Europe.
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