Economic news

Indian Shares Fall for Fifth Session

BENGALURU, Feb 22 (Reuters) - Indian shares extended their fall to a fifth straight session on Tuesday over concerns that a fresh escalation in Russia-Ukraine tensions could push oil prices higher and stoke inflation.

The blue-chip NSE Nifty 50 index ended down 0.67% at 17,092.20, while the S&P BSE Sensex fell 0.66% to 57,300.68.

The benchmark indexes fell 2% earlier in the day, with the Nifty breaking below the key 200-day moving average, a bearish technical signal, after falling below the 50-day and the 100-day moving averages this month.

Russian President Vladimir Putin ordered the deployment of troops to two breakaway regions in eastern Ukraine after recognising them as independent on Monday, drawing U.S. and European condemnation for acceleration of a crisis the West fears could unleash a major war. 

"The situation is very fluid; if a response from the West is very swift and sharp then it will lead to further problems and rising crude prices is certainly a major headwind for India as it has inflationary consequence," said V.K. Vijayakumar, chief investment strategist at Geojit Financial Services.

In Mumbai trading, heavyweight financial firm Bajaj Finserv and automaker Mahindra and Mahindra each gained more than 1%, helping limit market losses.

The Nifty and the Sensex have fallen more than 1% this month so far on geopolitical tensions, concerns around inflation and expected rate hikes by the U.S. Federal Reserve.

Foreign investors have sold a net $6.91 billion in Indian equities so far this year, while domestic institutional investors have poured in a net $5.45 billion, according to Refinitiv data.

"On the positive side, fund flows from domestic investors continue to remain strong. And any sharp fall in equities would be viewed by domestic investors as a buying opportunity if you take a medium-to-long-term view," said Ajay Bodke, an independent market analyst.

Reporting by Rama Venkat and additional reporting by Nallur Sethuraman and Gaurav Dogra in Bengaluru in Bengaluru; editing by Uttaresh.V and Vinay Dwivedi

Source: Reuters

To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree