Amid Russia-Ukraine war Sensex dips by 700 points

Sensex down 575.46 pts.

Mumbai: Amid ongoing Russia-Ukraine conflict, the stock market opened in negative on Monday.
While Sensex was at 55,145.3, down by 713.15 or 1.28 per cent in the opening session, Nifty was at 16,477.45, down 180.95 points or 1.09 per cent. The BSE Sensex had rallied 1328.51 points to close at 55,858.52 on positive global cues last Friday.
The Nifty of National Stock Exchange (NSE) too had gained 410.45 points to close at 16,658.40. Tech Mahindra, Sun Pharma, LT, Reliance, Wipro, Titan, Ultracement, ITC, TCS were among the top losers while Tata Steel, Powergrid and NTPC were among the top gainers.
However, gold and silver prices rallied in the market due to the conflict. Gold futures on MCX were trading higher by 1.59 per cent at Rs 51,020 per 10 gm while silver futures were trading higher by 1.88 per cent at Rs 1217 at Rs 66,122 per kg. Commenting on gold prices, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, Ravindra Rao said,” COMEX gold trades about one per cent higher near USD 1912/oz after a modest decline last week. Gold has edged up on safe haven buying as western countries ratcheted up sanctions on Russia while there is uncertainty of a major breakthrough in talks.”
”Adding support to prices, Bank of Russia said it will start purchasing gold again. However, safe haven buying has also pushed the US dollar index higher and this has kept a check on gains in gold. Gold may remain volatile as the market reacts to Russia-Ukraine development, however the general bias may be on the upside until there are clear signs of de-escalation in tensions,” he further said.
On crude prices, he stated, ”NYMEX crude has gained about five percent to trade near USD 96/bbl after a volatile trade last week. Crude remains supported by supply concerns as western sanctions are likely to impact Russian trade even though no direct restrictions are put on energy exports yet.”
”Crude trades higher also as Russia-Ukraine tensions have cast cloud over OPEC+ alliance however market players expect the alliance to continue and maintain their gradual production hike stance. Weighing on crude price is signs of progress in Iran’s nuclear talks and prospect of higher US supply as rig count jumped to fresh April 2020 highs. Crude may remain volatile but largely positive amid persisting supply risks,” he added.