Indian benchmark indices entered correction territory as Russian President Vladimir Putin announced military operations in Eastern Ukraine on Thursday. The Nifty 50 and Sensex have now fallen more than 10 per cent from their recent highs after the brief recovery seen in January. Both the benchmark indices were at their lowest levels since mid-December. At 9.50 am, the BSE Sensex was ruling at 55,207.7, down 2,024.32 points or 3.54 per cent. The NSE The NSE Nifty trading at 16,490.45, down 573 points or 3.36 per cent. Asian peers were down up to 3.3 per cent.
Markets Enter Correction Territory as Russia Invades Ukraine
The Indian benchmark indices entered the correction territory. This came as an aftermath of shrugging of sanctions by Russian President Vladimir Putin, whose government recognised the independence of two eastern Ukrainain regions earlier this week, took note of ‘a plea to Moscow’ for help to stop alleged Ukrainian aggression. Further, the Russian President authorised a military operation, which some agencies suggested could be the start of war in Europe over Russia’s demands for an end to NATO’s eastward expansion. Putin, however, insisted Russia does not plan to occupy Ukraine.
All Sensex Components in the Red
All Sensex stocks were trading in the red. The worst was Tata Steel, which fell 3.32 per cent to Rs 1,102. IndusInd Bank, Bharti Airtel, ICICI Bank tanked 3 per cent each. UltraTech Cement, Tech Mahindra, SBI, M&M, TCS, Infosys and HDFC were all trading up to 3 per cent lower.
VIX Spikes Above 30
Dalal Street’s fear gauge index India VIX spiked 22.35 per cent to 30.03. Analysts had warned that VIX hitting the level of 30 could open up doors for 16,400 level on Nifty50.
“The growing concern surrounding the deteriorating Ukraine crisis has pushed global stock markets into correction mode. Investors should wait and watch the unfolding situation before taking any major commitments,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Selling during a crisis had never been a good decision. Therefore, investors should not panic and sell. Even though the situation is fluid, this is unlikely to become a prolonged hot conflict. Investors should not panic and sell their bluechip stocks. They can churn portfolios by selling weak stones and buying high quality stocks in IT and financials,” Vijayakumar added.