Rediff Money On February 24, 2022, Nifty, the benchmark index of the National Stock Exchange (NSE) in India, closed the day at 16,250, a huge 4.78% cut. The markets, not just in India, but worldwide fell drastically, following Russia’s military invasion of Ukraine. This article will discuss the opinions of Ambareesh Baliga, an independent market expert, and Deven Choksey of K R Choksey, on how India can weather this storm.
On January 24, 2022, Baliga predicted that if tensions between Ukraine and Russia escalated, Nifty would reach 16,000 levels. One month later, his prediction proved accurate. According to Baliga, Nifty is likely to break the 16,000 level and move towards 15,000. He also noted that there was no panic selling on Thursday, February 24, but that it was likely to happen soon.
Choksey said that markets react differently to crude prices, wars, and uncertainty. Therefore, reactions are relative in nature. He also noted that if the war or invasion with Ukraine does not translate into a global war situation, then the panic will settle down. If war does happen, India can still attract significant money from global investors.
Choksey predicted that if the markets do not hold the level of 16,350, another 400-500 point fall could happen. He also noted that in every correction that happened this year, investors were seeing value because business fundamentals had not changed.
Baliga believed that the panic was yet to come and that we could see panic selling either on Friday, February 25, or on Monday, February 28. He said that the conflict would have an impact on India’s macro-economic indicators like the Indian currency, interest rates, inflation, and more.
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