Markets

Sensex recovers a bit after fall of 1,800 points over Russia-Ukraine crisis

A man walks near a bronze statue of a bull outside the Bombay Stock Exchange (BSE) in Mumbai. File photo

A man walks near a bronze statue of a bull outside the Bombay Stock Exchange (BSE) in Mumbai. File photo | Photo Credit: AP

The BSE S&P Sensex slightly recovered from the massive fall of 1800 points reacting to the Russian military action in Ukraine,early Morning on Tuesday.

At 11.11 am the Sensex was down 1,665 points or 2.91% and trading at 55,567 points.

Amar Ambani, Head – Institutional Equities, Yes Securities said, “The geo-political event has been causing a rout across equity markets, as the world can ill-afford further disruption in trade and commodities when Covid has already weakened sovereign balance sheets.”

“We had opined a few days ago that post the meteoric rise to 18,000 on the Nifty from lows of 7,500, it seemed like the Nifty could correct to 15,800 level. We were already witnessing the consolidation since mid-October 2021 due to lack of fresh triggers,” he said.

He said the Russia-Ukraine issue has added a negative trigger to the existing overhang of the US Fed likely raising rates in March 2022.

“However, we reiterate our bullish stance on Indian equities for next three years. History has shown us that these wars offer good entry points for investors. Be it the wars of Vietnam, Gulf, Afghanistan, Iraq or the Crimean crisis, markets have fallen on war fear, then rallied when the actual battle broke out and further continued its upward journey post the war.”

He said the next 7-odd trading sessions offer tremendous opportunity for the long-term investor.


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Printable version | Jun 25, 2022 11:18:58 am | https://www.thehindu.com/business/markets/sensex-recovers-a-bit-after-fall-of-1800-points-as-russia-invades-ukraine/article65079805.ece