Ukraine crisis: What will be its effect on the stock market in the worst case, know

Ukraine crisis: What will be its effect on the stock market in the worst case, know


new Delhi. Ukraine Crisis News: Due to the situation created between Ukraine and Russia, the markets around the world are scared. On Friday, the US stock markets had fallen by more than 6 percent. On Monday, the stock markets of Moscow (Russia) had seen a fall of about 15 percent. Indian stock market is also not untouched by this crisis.

Giving its assessment amid this situation, Goldman Sox said on Monday that in the worst case scenario, the Russian currency could fall by up to 10 percent. If this happens, it is possible to increase oil prices by up to 13%. A fall in the Russian currency will also result in a reduction of 27 basis points in the benchmark treasury yield.

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Investors Hedging Funds

Traders are busy selling their stocks to raise money in their treasury due to rising tensions near the Ukrainian border. Talking about investors, they are hedging their positions with a view to deal with any possible bad situation in future, so as to limit losses. President Vladimir Putin’s recognition of two self-declared separatist republics could reduce the chances of European-mediated peace talks. Due to this effect, there will be an increase in energy prices, which will affect growth and increase inflation. Russia, however, denied that it would attack Ukraine.

What if the situation improves?

According to experts, in the event of Goldman’s worst forecast, European and Japanese equity markets may see a decline of 9%, the tech-heavy Nasdaq by 10% and the euro 2% against the dollar. Conversely, if conditions improve and the war is averted, the ruble will strengthen and the US stock market could jump up to 6%. Along with this, the Treasury Yield will also jump.

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How will the Indian stock market react?

Indian stock markets follow American markets. If there is a fall of 8-10 percent in the markets globally, then Indian markets can also follow it and fall in the same proportion. If foreign investors withdraw more money, the situation may get worse. After this, the price of oil will be fixed to increase and the effect of inflation will be seen.

On the contrary, if the situation improves, then the US stock market will jump up to 6 percent and oil prices will also be under control. In such a situation, there will be a possibility of more bounce in the Indian markets. The reason for this will be that foreign investors will pour more money, because India is a developing economy.

Tags:, Stock Markets, Ukraine


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