Stock markets open negative: sensex in red, nifty around 15,800

The Sensex was down 1,426.28 points or 2.49 percent at 55,805.78. The broader Nifty was down 407.80 points or 2.39 percent at 16,655.50.Representative image | File photo The benchmark stock

market indices plunged at the opening bell on the bourses on March 8, Women's International day. At 09:16 AM, the Sensex nosedived 412.69 points or 0.78 percent at 52,430.10. The

broader Nifty was down 115.40 points or 0.73 percent at 15,747.80. About 1,238 shares have advanced, 549 shares declined, and 91 shares are unchanged. Among major losers on the Nifty were

Hindalco Industries, SBI Life Insurance, HDFC Bank, Hero MotoCorp and Eicher Motors. ONGC, Power Grid Corporation, HCL Technologies, NTPC and Tech Mahindra were among major gainers on the

Nifty. Nifty fell sharply on March 7, recovering minorly from the intra day lows as global stock markets came under selling pressure following crude oil prices touching $130 a barrel. At

close, Nifty was down 2.35% or 382.2 points at 15836.1. Nifty closed at a seven month low and fell the most in 7 days. Nifty is now close to the supports of 15700-15900. It has seen buying

support from this band twice during the day. However advance decline ratio remains down at 450:1873. The state assembly elections exit polls result expected in the evening could bring an end

to one uncertainty faced by the markets. As the outcome is not severely against the BJP, we think that the markets could bounce up in the next few sessions not getting too perturbed by the

developments in Europe. NO SIGN OF RUSSIA UKRAINE HOSTILITIES DIMINISHING Markets have been rocked by a sharp increase in crude oil prices, as investors fear more penalties against Russia.

Furthermore, there is no sign that the two countries' hostilities are diminishing. Prices for everything from gasoline to aluminum to wheat have risen dramatically, marking the most

significant weekly increase in raw materials since the 1974 oil crisis. Russia's growing isolation is cutting it off from a vital supply of energy, metals, and agriculture, prompting

fears of long-term shortages and rising global prices. As the war between Russia and Ukraine pushed crude prices to multi-year highs around the world, the Indian rupee dropped to its lowest

level ever versus the US dollar on March 7. ASIAN STOCKS FALL Most Asian stocks fell Tuesday as traders evaluated concerns that elevated commodity costs will fan inflation and choke economic

expansion. US STOCKS TUMBLE US stock indexes tumbled Monday, with the Dow industrials entering correction and the Nasdaq Composite Index finishing in bear-market territory, as investors

weighed the further financial isolation of Moscow and implications of a possible US ban on oil imports out of Russia, which could exacerbate inflationary pressures. The Dow Jones Industrial

Average fell 797.42 points, or 2.37 percent, to 32,817.38, the S&P 500 lost 127.79 points, or 2.95 percent, to 4,201.08 and the Nasdaq Composite dropped 482.48 points, or 3.62 percent,

to 12,830.96. Amazon, Microsoft and Apple were among the top individual drags on the S&P 500 while the financials sector fell 3.7 percent. The utilities sector , one of the defensive

areas of the stock market, gained 1.3 percent. Russian troops continued hostilities on Monday as cease-fire attempts failed and an estimated 1.7 million refugees poured into neighboring

countries. Grain prices also were surging, with wheat futures jumping 7% and continuing a march toward all-time highs as the war shuts down exports from the Black Sea region, a crucial

global breadbasket. U.S. oil futures settled at $119.40 a barrel, the highest in more than 13 years. The Dow tends to rise after having closed in correction territory. Historically, the

average gain for the following 12 months after such a close is 8.7 percent. Losses in the year after a close in correction territory tend to happen when markets are anticipating a recession.

STATE POLL RESULTS INDICATIONS The top headline from the exit poll surveys is that the Bharatiya Janata Party appears set to retain power in UP with a clear majority and emerge as the

single-largest party near the halfway mark in Uttarakhand as well as Manipur. Goa could see another hung assembly with the BJP and Indian National Congress in a close contest. OIL PRICES

JUMP TO HIGHEST LEVELS SINCE 2008 Oil prices jumped to their highest levels since 2008 as the United States and European allies considered banning Russian oil imports, in response to the

country's invasion of Ukraine, while it looked less likely that Iranian crude would return swiftly to global markets. Russia calls the campaign a "special operation". US

CONSUMER PRICES REPORT AWAITED Investors are waiting for a US consumer prices report on Thursday, with the Fed widely expected to hike rates later this month to combat surging inflation.

Declining issues outnumbered advancing ones on the NYSE by a 3.62-to-1 ratio; on Nasdaq, a 2.74-to-1 ratio favored decliners. RUPEE HITS NEW LOW AGAINST DOLLAR High commodity prices, as well

as outflow of foreign funds from equity markets, dragged Indian rupee to a new record low against the US dollar. Rising prices of crude oil, along with other commodities triggered by the

Russia-Ukraine war, had kept weak pressure on the rupee. The Ukraine crisis pushed Brent crude oil price to $130 a barrel on Monday. Besides, the trend is expected to trigger an inflationary

trend and ultimately a reversal in monetary policy. Further, it has accelerated FIIs' selling in the Indian equity market. FIIS ON SELLING SPREE The FIIs net sold Rs 7,482.08 crore

worth of equities. Consequently, the Indian rupee touched a new record low of 77 to a US dollar on Monday's trade session. It weakened to 77.16 and closed at 76.97 to a USD.

GEO-POLITICAL TENSIONS, INFLATION TO SUPPORT PRECIOUS METALS On Monday, gold and silver were settled on a mixed note, Gold prices crossed $2000 per troy ounce first time since August 2020 on

the Comex division. Record gains in the crude oil prices and safe-haven demand supported yellow metal. Silver prices also hit eight month highs during the session and tested $26.35 per troy

ounce levels, before settling down to $25.72 per troy ounce. Despite gains in the dollar index precious metals are showing strength due to escalating war between Russia-Ukraine. Rahul

Kalantri, VP Commodities, Mehta Equities Ltd. said, "We expect geo-political tensions and higher inflation continue to support precious metals. Gold is expected to test $2062 per troy

ounce and silver could also test $26.84 per troy ounce in the upcoming sessions. In INR terms gold has support at Rs52,795–52,320, while resistance is at Rs 54,120–54,700. Silver has support

at Rs69,112- 68,450 while resistance is at Rs 71,140–72,000."