Last Updated on Feb 22, 2022 by Manonmayi
After Russian President Vladimir Putin sent troops into breakaway regions of eastern Ukraine, global stocks fell, while oil rose to a 7-yr high. Safe-haven assets, on the other hand, soared with gold prices nearing a 9-mth high.
The SGX Nifty futures on the Singapore Exchange were trading at 17,068 points, which indicated that Indian stock exchanges will be under pressure.
Domestic equity gauges, Sensex and Nifty, both fell for the fourth straight session on Monday (21 February 2022) as investors remained wary of ongoing geopolitical concerns in Ukraine. The Sensex was down 150 points, while the NSE Nifty was down 69.65 points.
“Stock market investors are warned to stay watchful about additional events after Russian President Vladimir Putin’s recognition of two breakaway regions of eastern Ukraine since there is a risk of retaliatory action by the US and its allies. They should also keep a watch on the SGX Nifty’s narrower range, which is 16,800 to 17,380 points. A violation of the 16,800 points support level by the SGX Nifty would indicate further weakness in the Indian stock market,” stated the Vice President of IIFL Securities.
Japan’s Nikkei and Hong Kong’s Hang Seng indexes were both down over 2% today in Asian markets. Futures in the United States also projected a steep cut. Futures on the S&P 500 lost 1.5%, while Nasdaq futures sank 2.2%.
Brent crude futures gained 1.6% to $ 96.94, barely below a seven-year high, causing worries in the Indian economy. Spot gold was up 0.2% at $ 1,909.54 per ounce, the highest level since 01 June when it hit $ 1,913.89 per ounce.
Putin recognised two breakaway regions in eastern Ukraine as independent on Monday and ordered the Russian army to conduct a “peacekeeping” operation in the region, intensifying a crisis that has roiled global stock markets.
Washington and European countries slammed the action, vowing fresh sanctions. US Secretary of State Tony Blinken stated that President Vladimir Putin’s decision to recognise the so-called “Donetsk and Luhansk People’s Republics” as “independent” is a blatant attack on Ukraine’s sovereignty and territorial integrity.
