Russia Ukraine crises triggers massive sell off in the Indian Equity Market & Global Financial Markets

Russia Ukraine crises triggers massive sell off in the Indian Equity Market & Global Financial Markets on Wednesday 24th February 2022
• On Wednesday 24 th February 2022 we saw panic and nervousness across global and Indian financial markets. A steep sell off was seen across the global and Indian Equity markets as the Russia Ukraine crisis worsened. Geopolitical tensions loomed causing panic in the Indian and Global Financial markets.

• Crude Oil was on the Boil. Brent crude was seen at a 7 year high. Brent crude spiked traded above 100 $ a barrel, hit 104 $ a barrel during the day. As we know Russia accounts for 12% of global crude oil exports and is the 2nd largest producer & exporter of crude oil globally.
• We saw Gasoline, heating oil prices at 7 year highs.

• We saw Commodity prices soar high on fears of disruption. Aluminium was seen at an all time high while Nickel was seen at a 10 year high, Gold was seen at a 13 month high. Russia contributes to 10 % of global Nickel output

Sell off in the Indian Equity Market and Global Financial Markets

• We saw the United States and United Kingdom announce sanctions on Russian Banks and Sovereign debt
• As the Russia Ukraine crisis deepened Germany froze Nord stream 2 gas project
• As per news channels Russia launched attack on Ukraine by Land, Sea & Air

.• During the day we saw a steep fall in the Russian Equity Markets. Russian Indices- RTS was down 50%, MOEX Russia Index down 45% during the day though the Indices recovered a bit later in the day.
• Russian Currency was seen at all time lows. Russia Equity Index was seen at a 2 year low

• All Global Indices were seen deep in the Red during the day. Dow futures were down more than 700 points on 24th February 2022 in spite of a steep fall seen on Dow Jones Index and Nasdaq the previous day.
• Hang seng was down around 750 points, Nikki was down 450 points during the day.

• The Indian Equity market closed with deep cuts on 24th February 2022.

• Nifty 50 Index was down 815 points and closed @ 16248, Nifty Bank was down 2164 points and closed @ 35228 down, Sensex was down 2700 points and closed @ 54530.
• A severe sell off was seen across stocks and sectors in Indian Equities throughout the day. All major Indian Indices closed deep in the red on 24th February 2022.
• Rupee was @ 75.72 was seen depreciating throughout the day. Rupee depreciated by Rs 1.10 against the US dollar in 1 single day.
• BSE Companies wiped out more than Rs 13 lakh crore market capitalization in just 1 single day.

• Nifty 50 Index has corrected 12% from all time highs.
• Nifty Micap Index has corrected 20% from all time highs.
• Nifty Small cap Index has corrected 22% from all time highs.
• 25 Nifty stocks have corrected more than 20% from all time highs.

• As the Russia Ukraine crisis deepened we saw panic & nervousness across Indian Equity Market and Global Financial Markets. A severe sell off was seen across Indian & Global Financial Markets.

We had cautioned people about the Downside Risk to the Indian Equity market in 2022 due to the ongoing geopolitical tensions between Russia and Ukraine in our blog post on Downside Risks to Indian Equity Market in 2022.

Read our Stock Market Blog