Sensex falls more than 1100 & Nifty 350 pts amid Geo-political uncertainties this morning

Amid geo-political uncertainties causing upheavals also in the Asian markets, BSE Sensex too fell more than 1200 and Nifty more than 350 points in the morning hour when the session started. Majority of the sectoral indices were in the red at the time of reporting with auto, bank, FMCG, realty, metal, power and capital goods indices dawn by around 2-3%. At around 11 in the morning, the overall market breadth was in negative with around 2630 stocks falling on the BSE and only around 515 were trading in green.

Russia-Ukraine tensions appear to be the main cause of concern for the investors across the globe. Moreover, crude oil prices are also likely to be volatile including volatility in the dollar index.  Presently, WTI Crude Oil holds 88 dollar a barrel and Brent holds 90 dollar a barrel in the international markets. Crude running at an eight year high is another concern for India, as it is one of the largest importers of crude oil.

However, amid these geo-political tensions, precious metals could remain positive this week. While, the weakening key benchmark indices are considered to be the direct fall out of the heightened tension over the Russia-Ukraine tussle, it is also widely felt that if the crisis diffuses, a sharp rebound in markets is highly expected.

Last week too, Sensex and Nifty were seen volatile. On Friday, US stock markets also crashed heavily with Dow Jones down by 1.4% and Nasdaq fell by 2.8%. Earlier, America had warned that Russia could start invasion any day as it has gathered enough troops near Ukraine.

The major Asian markets were also in deep red this morning underlining the bearish sentiments with Nikkei down over 2.5%. Only Shanghai Composite appeared to be moving up slightly.

Show More

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button