Russia vs Ukraine Conflict Affect on Indian Market
The stock market of India also took a heavy blow. India’s stock market was one of the worst-hit among the other Asian countries.
The tension between Russia and Ukraine has been the talk of the town last couple of weeks. But things took a drastic turn earlier today.
Early this morning, the news broke out that Russian President Vladimir Putin had declared war on Ukraine. It was followed by military operation and later a full invasion.
This whole situation is a matter of concern not only for the two countries involved but also for the others.
The ongoing war between the countries will directly impact the global economy, which we have already started seeing. The market opened with a plunge, the Russian ruble hitting an all-time low and the stock market going down by 29%.
The prices for Brent crude oil kept rising throughout the day, reaching $103 by afternoon. It’s a 7% increase so far and can go higher.
It is important to note that 80% of the oil in India is exported along with sunflower oil, 90% of which is supplied by Russia and Ukraine.
The stock market of India also took a heavy blow. India’s stock market was one of the worst-hit among the other Asian countries. When the market opened, within the first hour of trade, the market capitalization of BSE-listed companies dipped by $177 Billion.
As the news about the war broke out in the morning, Sensex and Nifty trade were down at about 3.5%. It is predicted that trade might keep going down or experience similar downloads in the days followed.
Stock prices of various other equities fell down Tata Motors by 5.91% as of 10 am today. Other Nifty stocks that plunged due to the Russia-Ukraine conflict are.
- IndusInd Bank: – 4.56%
- Mahindra & Mahindra: -4.08%
- Bharti Airtel: -4.46%
- Tata steel: – 3.4%
The percentage change is as of 10 am today.
The Crypto market wasn’t untouched either. Russia is one of the major crypto mining countries and owns 12% of the world’s crypto holding.
Bitcoin, which has already been dipping lately, took one more hit, and the price went down to $35,000 as of 3 pm today. The other cryptocurrencies as well suffered a severe blow from the clash.
Besides the stock market, other aspects of the economy are also getting affected.
Russia and Ukraine are some of the biggest exporters of wheat grain, and this alone should alarm the rest of the countries regarding the price surge that’s gonna happen for wheat.
It is believed that as the war progresses, so will its impact. Economies throughout the globe will be hurt severely.
The war between Russia and Ukraine will lead to a surge in oil and other commodities prices and an increase in inflation.