Share/Stock Market Highlights: The topline equity indices on BSE and National Stock Exchange (NSE) fell for the seventh straight session, crashing over 4.7 per cent lower on Thursday tracking a fall in their global peers which fell after Russia announced military operations in eastern Ukraine. Earlier in the day, Russian President Vladimir Putin announced a military operation and warned other countries that any attempt to interfere with the Russian action would lead to “consequences they have never seen.” As Putin spoke, big explosions were heard in Kyiv, Kharkiv and other areas of Ukraine and air sirens went off in Kyiv, indicating that the capital city is under attack.
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The S&P BSE Sensex crashed 2,702.15 points (4.72 per cent) to settle at 54,529.91 while the Nifty 50 tumbled 815.30 points (4.78 per cent) to end at 16,247.95. Both the indices had opened around 3 per cent lower and traded in the red throughout the session. It mostly traded in a range of 3-3.2 per cent cuts however towards the last hour of the session, indices fell further to their day’s low. In the intraday trade, the BSE benchmark fell to a low of 54,383.20 while the NSE barometer touched 16,203.25.
All sectoral indices on NSE ended with sharp cuts. All constituents of Sensex ended in the red. IndusInd Bank, Mahindra & Mahindra, Bajaj Finance, Axis Bank, Tech Mahindra, Maruti Suzuki India, Tata Steel, Bajaj Finserv and HDFC Bank were the biggest losers on Thursday falling in a range of 5.48-7.88 per cent. The volatility index or India VIX on NSE surged 30.31 per cent to 31.9825.
(with inputs from agencies) Read less
The benchmark equity indices on BSE and National Stock Exchange (NSE) failed to hold on to their intraday gains and ended lower for the sixth successive session as they slipped over 0.1 per cent on Wednesday amid escalating tensions between Russia and Ukraine.
The S&P BSE Sensex fell 68.62 points (0.12 per cent) to settle at 57,232.06 while the Nifty 50 slipped 28.95 points (0.17 per cent) to end at 17,063.25.
India’s trade with Russia has not yet been severely impacted by the rising tensions in the border region of Russia and Ukraine, but there is looming prospect that it could be impacted if wider sanctions on Russia are announced. CLICK HERE to read
The rupee tanked 102 paise to close at 75.63 (provisional) against the US currency on Thursday as riskier assets took a hit after Russia launched military operations against Ukraine.
Forex traders said sustained foreign fund outflows, heavy selling in domestic equities and elevated crude oil prices weighed on investor sentiment.
At the interbank foreign exchange market, the rupee opened at 75.02 against the American dollar but later dropped to a low of 75.75 against the greenback. The local unit finally finished at 75.63, down 102 paise from the previous close.
(PTI)
"It was a big surprise for the world market as it was not anticipating a war. It was expecting a diplomatic meet between Biden & Putin. Markets around the globe plunged deep in red as the Ukraine crisis intensified with Russia’s invasion into Eastern Ukraine. Crude oil prices crossed $100 per barrel and elevated inflation risk"
"Prolonged Geo-political tensions between Russia - Ukraine could lead to further inflationary pressure, compelling policy makers globally to accelerate raising interest rates at the cost of economic growth. From an Indian economy standpoint, the economic impact is likely to be more short term in nature as its economy will continue to be driven by its long-term fundamental growth prospects. In 2020, India imported only $7.3 billion of all products from Russia (less than 2% of India’s total imports) and exported $3.9 billion of all products from Russia (less than 2% of India’s total exports)"
The S&P BSE Sensex ended at 54,529.91, down 2,702.15 points or 4.72 per cent, while the Nifty 50 settled at 16,247.95, down 815.30 points or 4.78 per cent.
"Brent above $100: Putin orders troops into the breakaway regions of eastern Ukraine
In July 2020, just a few months after the COVID-19 pandemic started to spiral out of control, Shell CEO Ben van Beurden declared world oil demand may have passed its peak – all but condemning his company’s core business to eventual obscurity.
“Demand will take a long time to recover if it recovers at all,” he told reporters after the Anglo-Dutch energy company reported a sharp drop in second-quarter profit. CLICK HERE to read
"The increase in hostilities by Russia has expectedly spooked the global markets. While a fall today is a reaction to this development, markets anyway have been factoring such a development. In that sense a short term bottom may happen over today or tomorrow. However the repercussion of these actions in terms of impact on commodity prices, including crude, supply disruptions and the sanctions that can be levied by the western nations remains uncertain and could result in next leg down after a brief recovery."
Gold prices jumped more than 2% on Thursday to their highest in over a year and palladium extended a rally as Russian forces invaded Ukraine after President Vladimir Putin authorised what he called a special military operation.
Spot gold climbed 1.9% to $1,943.28 per ounce by 0720 GMT, after hitting its best level since January 2021 at $1,948.77. U.S. gold futures jumped 1.9% to $1,945.90.
(Reuters)
Oil prices surged by nearly $6 per barrel Thursday after President Vladimir Putin launched Russian military action in Ukraine.
Brent crude oil jumped to over $100 per barrel on unease about possible disruption of Russian supplies. The price of US benchmark crude briefly surpassed $98 per barrel.
(AP)
Domestic stock markets on Thursday morning plunged by over three per cent and joined a global stock sell-off as the escalating situation between Russia and Ukraine and rising crude oil price hit the sentiment. After crashing by over 2,000 points at one stage, the benchmark Sensex was trading 1,668 points down at 55,563.92 and the NSE Nifty index 488 points lower at 16,574.80 in intra-day trade at 10.20 am. Investors cut their positions worried over the possibility of a prolonged crisis in Ukraine and its impact on the Indian economy. CLICK HERE to read
The Moscow Exchange said on Thursday morning it had suspended trading on all markets.
The exchange will announce the resumption of trading at a later date, it said.
(Reuters)
The rupee declined 55 paise to 75.16 against the US dollar in opening trade on Thursday, amid weak risk appetite after Russian President Vladimir Putin announced a military operation in Ukraine.
Forex traders said sustained foreign fund outflows, a lacklustre trend in domestic equities and elevated crude oil prices weighed on investor sentiment.
At the interbank foreign exchange, the rupee opened at 75.02 against the US dollar, then slipped further to 75.16, registering a decline of 55 paise from the last close.
(PTI)
Investors’ wealth tumbled by more than Rs 8 lakh crore in less than an hour of trade on Thursday, as Russia’s attack on Ukraine pushed stock markets deep into the red.
Amid investors getting spooked by the escalating tensions between Ukraine and Russia, the market capitalisation of BSE-listed companies crashed to Rs 2,47,46,960.48 crore at around 10.15 am. CLICK HERE to read
"The growing concern surrounding the deteriorating Ukraine crisis has pushed global stock markets into correction mode. The near 20% decline from the peak in NASDAQ is a clear indication of the correction that has set in. Also, the safe haven gold shooting to $1913 is a reflection of the risks arising from the crisis. Investors should wait and watch the unfolding situation before taking any major commitments. Buying should be confined to stocks/ segments which are fairly valued or have good earnings visibility.
IT, though highly valued, is a sector whose prospects are steadily improving. There are instances of promoters buying stocks of IT companies. This is an indication of better-than-expected results from the sector. Investors can use sharp market corrections to slowly accumulate high quality stocks in IT"
“The Sensex has fallen 1800 points, as Russia begins military operations in Ukraine. The geo-political event has been causing a rout across equity markets, as the world can ill-afford further disruption in trade and commodities when Covid has already weakened sovereign balance sheets. We had opined a few days ago that post the meteoric rise to 18,000 on the Nifty from lows of 7,500, it seemed like the Nifty could correct to 15,800 level. We were already witnessing the consolidation since mid-October 2021 due to lack of fresh triggers. The Russia-Ukraine issue added a negative trigger to the existing overhang of the US Fed likely raising rates in March 2022.
However, we reiterate our bullish stance on Indian equities for next three years. History has shown us that these wars offer good entry points for investors. Be it the wars of Vietnam, Gulf, Afghanistan, Iraq or the Crimean crisis, markets have fallen on war fear, then rallied when the actual battle broke out and further continued its upward journey post the war. The next 7-odd trading sessions will offer tremendous opportunity for the long-term investor. Invest in good quality management in sunrise sectors.”
"We are seeing the first meaningful correction in the market after a strong performance in 2021. A correction was due where geopolitical tension has become an excuse for this correction. Inflation and rising interest rates are the major concerns for equity markets and geopolitical tension is increasing the risk of inflation as energy prices are rising. Anecdotally, such kinds of geopolitical issues provide a good buying opportunity for the long-term investors and we are in a structural bull run that is likely to continue for the next couple of years where intermediate corrections will be part of this journey. Long-term investors should not panic and look for buying opportunities from lower levels where the domestic economy facing sectors like capital goods, infrastructure, real estate, financials should be on investors' radar.
Technically, Nifty has slipped below its 200-DMA which may lead to further weakness towards the 16000 level while 16400 is an intermediate support level. We can expect a bounceback from the 16000 level but confidence will back only if Nifty manages to cross the 17200 level. If Nifty breaks the 16000 level then the worst-case scenario could be 14000 but still we will remain in a long-term bull market.
Banknifty has also slipped below its 200-DMA where 35500 is the next important support level while 34000 is the next major support. On the upside, it has to cross the 37500 level to gain any strength."
U.S. equity futures and stocks tumbled Thursday while bonds jumped and oil soared as Russian President Vladimir Putin’s decision to conduct a military operation in eastern Ukraine cast a pall over global markets.
S&P 500 and Nasdaq 100 contracts slid about 2%, signaling the latter, tech-heavy gauge is on course for a bear market. European futures shed some 3% and an Asia-Pacific equity gauge fell to the lowest since 2020. CLICK HERE to read
Sensex tanks 1,461 pts to 55,770 in early trade, Nifty dives 430 pts to 16,633.
(PTI)