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The key benchmark indices opened in deep red as tensions around the Russia-Ukraine conflict continue to mount with global markets continuing to reel under selling pressure. At 9:16 am, the Sensex was down 984.56 points or 1.71 per cent at 56699.03, and the Nifty was down 281.20 points or 1.63 per cent at 16925.50. About 254 shares have advanced, 1932 shares declined, and 48 shares are unchanged.
All the Sensex-30 constituents were in the negative territory, led by losses in Dr Reddy’s, Asian Paints, TCS, L&T, IndusInd Bank, HDFC twins, Bajaj Finserv, down 2-3 per cent. The broader markets were also deep in red with the BSE MidCap and SmallCap indices trading down up to 2 per cent.
Dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services, 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. The situation remains fluid; we don’t know whether the tensions will escalate or be contained from now on. The biggest macro headwind for India is crude racing to $97.”
“The inflationary consequence of this will force the RBI to abandon its dovish monetary stance. Globally stock markets have turned weak. Buying opportunities may emerge in this correction. But investors need not rush-in to buy. The situation is fluid. FIIs are likely to continue selling. This will continue to depress the prices of some high quality financials. Nibbling in this segment can be considered,” Vijayakumar added.
Domestic equity gauges Sensex and Nifty logged their fourth straight session of fall on Monday as participants remained cautious over lingering geopolitical tensions in eastern Europe. Sensex settle at 57,683.59, down 149.38 points or 0.26 per cent. Similarly, the broader NSE Nifty slipped 69.65 points or 0.40 per cent to close at 17,206.65.
Global Cues
Asian stocks fell, safe-havens rallied and US stock futures dived on Tuesday as Europe’s eastern flank stood on the brink of war after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine. S&P 500 futures fell 1.5 per cent and Nasdaq futures fell 2.2 per cent. MSCI’s broadest index of Asia Pacific shares outside Japan lost 0.66 per cent in early trade on Tuesday and Japan’s Nikkei tumbled 1.6 per cent.
Oil jumped to a seven-year high amid concerns over Russia-Ukraine tensions. Brent crude futures rose 4 per cent to $97.35, their highest since September 2014. US President Joe Biden signed an executive order to prohibit trade and investment between US individuals and the two breakaway regions of eastern Ukraine. Britain vowed to impose sanctions on Russia, which it warned could invade Ukraine imminently.
US markets were closed on Monday on account of President’s Day.
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