Markets are on an accelerated trajectory; Crude oil prices hit their highest level since 2008

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On a sector basis, Nifty Bank and Auto fell 4% each, and the housing index fell 5.5% on Monday.

By Ruchit Purohit & Yoosef KP

Stock indices plunged on Monday amid concerns over the economic cost of the ongoing war in Ukraine, which has seen crude oil prices rise to their highest level since 2008. The Sensex slipped below levels of 53,000, while the Nifty broke its important support level of 16,000 during the day. . Financials and Reliance Industries (RIL) led the fall.

Since their peak in October, markets have corrected more than 14% amid negative global indices and relentless selling by foreign portfolio investors (REITs). Over the past four trading sessions, REITs have sold shares worth Rs 26,096.69 crore, according to preliminary exchange data. So far in 2022, the Sensex is down 12.4% in dollar terms against 3.3% gains recorded by Jakarta Composite. While Shanghai Composite lost 6.8%, Taiwan TAIEX fell 7.7% over the same period. South Korea, which has a similar oil import bill to India, also plunged 13.7% between January and today.

After plunging as low as 1,966 points in intraday trading on Monday, the Sensex recouped some of its losses to close at 52,842.75, down 1,491.06 points or 2.7%. The Nifty-50 ended down 382.20 points or 2.4% at 15,863.15. “Nifty’s short-term trend continues to be weak. Monday’s last-hour upside rally may bring some hope for a near-term rally. A sustained bullish bounce is expected from here or from lows lows of 15700-15500 over the next few sessions,” said Nagaraj Shetti, technical research analyst at HDFC Securities.

Broader markets also fell in line with the benchmarks, with the BSE mid-cap and small-cap indices falling 2.3% each.

On a sector basis, Nifty Bank and Auto fell 4% each, and the housing index fell 5.5% on Monday.

Pankaj Pandey, head of research at ICICIdirect, said: “Global and Indian equities continue to undergo a correction amid the ongoing Russian-Ukrainian conflict and concerns over the economic costs of the war and subsequent sanctions on economies. markets, with the main concern currently being a sharp rise in crude prices.

Bullion prices continued to strengthen, with gold crossing $2,000 an ounce for the first time since August 2020. Domestic silver prices also rose above 71,200 rupees on Monday.

Among Sensex shares, IndusInd Bank was the biggest loser, falling 7.6%, followed by Axis Bank, Maruti Suzuki and the Bajaj twins, each falling between 6.3% and 6.7%. On the other hand, Bharti Airtel, HCL Tech, Tata Steel and Infosys finished in the green.

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