On 24 February, Russian President Vladimir Putin announced a military operation in eastern Ukraine. After this, the Indian markets went into a heavy downtrend for the second time after March 2020. After a mild recovery seen in January, the Sensex-Nifty has broken more than 10 percent from its recent high. Since mid-December, both these indices have been looking around their lowest levels.
Let us tell you that Russian President Vladimir Putin has announced a military operation in eastern Ukraine in a televised message released today. Let us tell you that just a day ago, Russia recognized two different areas of Eastern Ukraine as independent countries. Geojit Financial Services VK Vijay Kumar says that due to the increasing severity of the Ukraine crisis, the global stock market has turned into a correction mood. Investors should be in wait and watch mode and wait for the conditions to clear before taking any major investment decision.
At present, around 11.03 am, the Sensex is trading at a level of 55,582.75, down 1649.31 points or 2.88 percent. On the other hand, Nifty is trading at a level of 16,573.10, down 490.15 points or 2.87 percent.
Let us have a look at the reasons that have led to this decline in the market.
Russian attack on Ukraine
Before Russian President Vladimir Putin’s televised message was completed, Russian forces began bombing several cities in Ukraine. From an investor’s point of view, the incident itself is quite disappointing. Now a lot will depend on how NATO will react to this action of Russia.
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Crude prices cross $100 per barrel
The price of crude has reached $100 per barrel. This boil in crude has come due to the Russian attack on Ukraine. For the first time since 2014, the price of crude has reached $100. Traders fear that sanctions may be imposed on Russia that will affect its ability to export oil. This will create more problems in the supply of oil.
F&O Series Expiry
The Ukraine crisis seems to have escalated at the same time that February is the expiry day of the derivatives series. The market is seeing further pressure amid geopolitical tensions due to expiry of derivatives contracts. The India VIX index has jumped 22 per cent to reach the 30 level. Which is the highest level of the last several months.
Today, the market has seen more selling in small-medium stocks than the giants. The Nifty Midcap and Smallcap indices have lost 2.6 per cent and 2.9 per cent each. If we look at different sectors, then real estate, metal, government banks, media have been seen to be hit the most. The Nifty Metal Index is down 2.9 per cent.
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