Market Closing : The effect of Russia-Ukraine crisis dominated the market today as well. Sensex and Nifty closed in decline today. However, during the trading day, it recovered from the lower level and Nifty managed to close above 16600. At the end of trading, the Sensex is trading at a level of 55,468.90, down 778.38 points, or 1.38 percent. On the other hand, Nifty closed at 16,605.95, down 187.95 points or 1.12 per cent.
In today’s trading, Nifty was seen going to the level of 17500 in intraday. Selling was seen on auto, banking, pharma, realty, FMCG, IT stocks in today’s business. On the other hand, metal, power, energy, oil-gas stocks rose.
major reasons for the decline
1. Russia-Ukraine war
The main reason for the decline in global markets is Russia’s attack on Ukraine. An economic crisis has arisen in Russia due to sanctions from Western countries, due to which the situation appears to be heading towards Europe’s worst conflict since World War II. Russia’s separation from SWIFT Financial Networks limits its ability to use its $630 billion financial reserve. Many companies have started withdrawing investments.
Russian forces have penetrated deep into Ukraine. In the opinion of experts, the volatility index will remain high in the near future due to the uncertainty surrounding the war.
2. Crude prices caught fire
Crude: Fears of disruption in energy supply have hit investor sentiment. Brent crude has surged above $110 a barrel, despite the US and its allies agreeing to release $60 million from their strategic reserves to support demand.
The increase in crude prices will add fire to the already high inflation. India imports about 80 per cent of its oil requirements. Due to this, the situation of current out deficit and fiscal deficit will worsen with inflation increasing here. This will also increase the pressure on the margins of Indian companies.
Tags: Share market, stock market today, Stock Markets
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