As Russia orders military action in Ukraine, the Sensex plummets by over 2,000 points
Back in India, the Dalal Street fear gauge index India VIX rose 22.35 percent to 30.03. Analysts had warned that a VIX level of 30 could open the door to the 16,400 level on the Nifty50.
The Sensex was trading in the red. Tata Steel was the worst performer, falling 3.32 percent to Rs 1,102. IndusInd Bank, Bharti Airtel, and ICICI Bank all fell 3%. UltraTech Cement, Tech Mahindra, SBI, M&M, TCS, Infosys, and HDFC were all down up to 3%.
Russia-Ukraine Commodity prices are increasing as a result of US turf wars and subsequent sanctions, adding to concerns about faster monetary tightening.
Because of higher Brent prices, the 10-year bond yield in India has risen to 6.76 percent. We do not expect key global bankers to change their monetary stance unless commodity prices remain elevated for a few months,” Phillip Capital said.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.6 percent in morning trade, while indices in Australia and Hong Kong fell 3.3 percent each. The Nikkei 225 index in Japan was down 2.3%. The price of Chinese blue chips fell 1%.
Meanwhile, oil prices have surpassed $100 per barrel for the first time since 2014. “The growing concern over the deterioration of the Ukraine crisis has pushed global stock markets into a correction. The rise in the price of safe haven gold to $1,913 reflects the crisis’s risks. Before making any major commitments, investors should wait and watch the situation unfold “Geojit Financial Services’ Chief Investment Strategist, V K Vijayakumar, agreed.
