Stocks in India tumbled today as global equities sold off as global investors fretted over escalating tensions between Russia and the West over Ukraine. The Sensex fell more than 1,500 points at the day’s low, while the Nifty fell below 17,000. Asian shares were under pressure today, while crude oil extended gains as geopolitical risks in Ukraine rippled through global financial markets, spurring demand for safe-haven assets. Gold prices hit a near 3-month high on MCX today.
“Sentiment has turned very negative in the short term as tensions over the Ukraine crisis have grown. Weak global markets are a direct consequence of the Ukraine crisis,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
The Indian rupee fell 20 paise to $75.56 in Monday’s open today as geopolitical tensions pushed investors towards the dollar’s safe-haven appeal.
Ukraine crisis
The U.S. warned that a Russian invasion of Ukraine could be imminent, while weekend talks between U.S. President Joe Biden and Russian President Vladimir Putin failed to break new ground. Meanwhile, German Chancellor Olaf Scholz will visit Ukraine today and Russia the next day for diplomatic talks.
Geopolitical tensions are another blow to risk asset markets, which are already jittery about high inflation and the prospect of aggressive interest rate hikes by the Federal Reserve.
Still, while all of these are negatives, the spread of the Ukraine crisis could spark a sharp rally in the market led by large-cap blue-chip stocks, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Complete News Source : Mint
