Fears of a recession have increased lately as the Federal Reserve tries to combat surging inflation with aggressive rate hikes, resulting in volatile risk sentiment around the world

For the market, every adversity is an opportunity and thus, this current geopolitical tension between Russia and Ukraine is also an opportunity in disguise for some.

On Thursday, the Indian markets opened marginally higher, as the core equity indices were up by 0.80 per cent. This comes after the FED Chairman, Jerome Powell announced that the highly anticipated rate hike will happen but at 0.25 bps rise only for now. The further point increase in the interest rate will depend if the inflation in the US remains ‘persistently high'. This statement came as a slight relief to the markets globally, in this period of turmoil. 

At 12.30 pm on Thursday, the core equity indices i.e., Sensex and Nifty 50 were seen extending the losses since their opening, as Russia finally strikes Ukraine and has reportedly destroyed Ukraine airbases. The Sensex was trading at 55,486.52 down by 1740.51 points or 3.04 per cent, while Nifty was at 16,533.60, down by 540.75 points or 3.17 per cent from the last trading session.     

It was going all well until the last hour of the trade when the Indian indices witnessed a severe sell-off.

The bigger risk that we saw is higher inflation, sucking out of liquidity and rising interest rate. These factors will play larger role in determining the returns of equity market in next one year.  

Indian indices recovered most of the points that were lost during the gap down.

At 1 pm on Tuesday, the core equity indices i.e., Sensex and Nifty 50 were trading in deep red amidst the rising geopolitical crisis between Ukraine and Russia, with India officially preparing to send flights to repatriate its citizens safely. The Sensex was trading at 56,792.71 down by 890.88 points 1.54 per cent, while Nifty was at 16,941, down by 265.65 points or 1.54 per cent from the last trading session.    

Coal India, Hindalco, and UPL are the top losers among Nifty stocks.