Russian-Ukraine Crisis – How it impacts Indian tech market

The Indian stock market has been on a free fall for the seventh straight session, with oil prices rising over $100 a barrel, Wall Street indices slipping close to a level that would confirm a correction, all of which can be attributed to the Russian invasion of Ukraine’s eastern regions.

With the Indian markets struggling to keep up, seeing a massive sell-off, we got to see a drop of over 2,000 points in the BSE Sensex. At 12:50 PM IST, Sensex was down 2,006.8 points ruling in at Rs 55,225.26. At the time, NSE Nifty was seen trading at Rs 16,462.30 (down 601 points).

At the time, Dalal Street’s fear gauge index India VIX has spiked to 30.03, which is extremely concerning, as experts have suggested that India VIX hitting 30 could open up doors for 16,400 levels on Nifty50.

All of the Sensex stocks were seen trading in red, with Tata Steel, IndusInd Bank, Bharti Airtel, ICICI Bank, UltraTech Cement, Tech Mahindra, SBI, M&M, TCS, Infosys and HDFC taking the major brunt of the blood bath.

Other Asian markets are also seeing a major selling with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 1.6 percent. The Australian and Hong Kong indices also plunged 3.3 percent. Japan’s Nikkei was down 2.3 percent and Chinese blue chips fell 1 percent. At the same time, oil barrel prices touched the $100 mark the first time since 2014.

While the market fell, gold did become a safe haven, rising to new levels.

All of this can be attributed to the ongoing Russia-Ukraine-US turf escalations and consequent sanctions, which are fuelling commodity prices, adding to fears of faster monetary tightening. Russian President Vladimir Putin has authorised a military operation, which some agencies suggested could be the start of a war in Europe over Russia’s demands for an end to NATO’s eastward expansion. The major fall in the market was seen today after Russia ordered military action in Ukraine.

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