Russia-Ukraine War: Sensex crashes over 1700 points! Has the bull been crushed?

It turned out to be a tough day for investors on Dalal Street as benchmark Sensex shares crashed over 1,700 points to an intraday low of 52,542 and Nifty plunged over 500 points to 15,741 amid weak global signals and soaring crude oil prices.

The market capitalization of BSE-listed companies fell by Rs 6.28 lakh crore after investors’ wealth fell to Rs 240.57 lakh crore from Rs 246.85 lakh crore in the previous session.

Sharing the technical view, Mohit Nigam, Head – PMS, Hem Securities said the immediate support and resistance in Nifty 50 are 15,700 and 16,500 respectively. The immediate support and resistance in Bank Nifty are 33 respectively. 500 and 35,100.

“The focus this week will be on the Russian-Ukrainian conflict and its impact on oil prices. On the home front, investors will be watching the outcome of national elections in five states on March 10,” he said. added.

Ravi Singhal, Vice Chairman of GCL Securities Limited, said: “Today’s drop was driven by news that the US may ban crude supplies from Russia. My point of view is the same as last time, now is not the time to make new investments until this war situation is resolved. , but long-term investors don’t have to worry about that. As Warren Buffett once said, he won’t sell stocks in a war, even if the conflict escalates into World War III.

“One more thing, Ukraine is fighting back stronger than expected and Putin also said they can hold out longer. So it may take another 20-30 days to sort out the situation,” he added.

“Many stocks in the broader market have corrected 20-40%. Investing here should focus on high-quality value picks. We expect stock prices to be in a wide range trading with rising volatility,” noted Divam Sharma, Founder, Green Portfolio.

He added that investors should also park new capital into the blue chips. With this turn of events, Sharma expects the world order to change over the next few years and hyperinflation to affect the world over the next few months. This could lead to further lower margins and further consolidation of market share in favor of large organized players.

“The extraordinary uncertainty triggered by the war has thrown commodity markets into turmoil. Crude at $128 is a significant shock. This may impact global growth and add to inflationary pressures. In India, growth will be lower and inflation higher than expected for FY23,” noted Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The market is slipping into bearish territory. Investors should be cautious. There is relative safety in energy due to high energy prices, metals due to high global prices and export segments due from the resilience of demand and the depreciation of the Rupee Calibrated purchase in very small quantities can be considered in the aforementioned segments,” he added.

Dr. Ravi Singh, VP and Head of Research-ShareIndia, noted that the benchmarks are selling off heavily due to an escalation of war by Russia, which is not only impacting gold and crude, but also on commodity prices around the world. New sanctions against Russia have triggered huge jumps in gold and crude prices.

“In this scenario where economies were already struggling to maintain the momentum of recovery, fears of stagflation also began to play out, with concerns over high commodity prices impacting inflation and a slowdown in economic growth. growth. All of these factors impact global markets and investment outflows,” he added.

He further added that Nifty might touch the 15,500 level in the near term with a strong downtrend widespread. Investors can remain cautious and follow a wait and watch strategy for now. Any new positions should be avoided until feelings and the situation stabilize.

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