DSIJ Mindshare

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.