Russia-Ukraine crisis spook markets: Investors lose over Rs 7 lakh crore in 5 days - Times of India

Russia-Ukraine crisis spook markets: Investors lose over Rs 7 lakh crore in 5 days – Times of India


NEW DELHI: The escalating tensions between Russia and Ukraine has spooked investor sentiments worldwide.
While Asian currencies and stocks fell as investors moved towards safe-haven assets, domestic benchmark indices also finished lower for fifth straight session on Tuesday.
The 30-share BSE index fell over 2 per cent during the day before staging a recovery, with the Nifty breaking below the key 200-day moving average, a bearish technical signal, after falling below the 50-day and the 100-day moving averages this month.
In fact, domestic indices have been under pressure since the past few sessions with BSE investors losing about Rs 7.40 lakh crore since February 16.
The market capitalisation of BSE-listed companies stood at Rs 262.18 lakh crore last Wednesday and has fallen to Rs 254.78 lakh crore in just 5 trading sessions. That is a fall of nearly 3 per cent in m-cap of BSE listed firms.

Both sensex and Nifty had plunged over 3 per cent on February 14 — making it the biggest single day drop since February last year.

The crash was mainly induced by heavy global sell off fuelled by escalating tensions between Russia and the West over Ukraine.
Global markets had also crashed after the White House told Americans to leave Ukraine within 48 hours, amid rising concerns over invasion by Russian troops.

However, markets recovered the very next day on February 15 and rebounded sharply amid reports of de-escalating tensions between the two nations.
There were reports that some troops in Russia’s military districts adjacent to Ukraine were returning to bases after completing drills, leading to hopes of easing frictions.
From February 16, there wasn’t much movement in the markets but sentiments have remained low. Both sensex and Nifty finished in red on all sessions since then.
In today’s session, the 30-share index plunged about 1,300 points in early deals and after a highly volatile session it closed lower by 382.91 points or 0.66 per cent at 57,300.68 points.
The broader NSE Nifty too reclaimed part of its early losses before closing 114.45 points or 0.67 per cent lower at 17,092.20.
“Escalations in Ukraine tensions with Russia recognising two pro-Russian rebel regions have aggravated the crisis. The economic consequences are already visible in higher crude and gold prices,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services told news agency PTI.
The biggest macro headwind for India is crude racing to $97 a barrel, he said, adding that the inflationary consequence of this will force the RBI to abandon its dovish monetary stance.
(With inputs from agencies)


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