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Below are View on Sensex and Nifty Down by Mr. Amar Ambani, Senior President & Research Head, YYES SECURITIES

Market saw its biggest fall in 10 months with Sensex dropping by 1747 points and Nifty by 531 points. In this context, please find below the views of Mr. Amar Ambani, Senior President and Head – Institutional Equities, YES SECURITIES for your consideration. Please let us know if you have any queries, we will connect you to Mr. Ambani.

Tensions surrounding Ukraine have impacted equities across the world. Heated geo-politics raise fears of disruption in world trade and further rise in crude oil price; something that the world can ill-afford, especially when all countries facing huge fiscal deficits due to support given to their economies during Covid. Back in India, banking stocks were a big drag on low sentiments, due to impact of ABG Shipyard scam on their books. These issues add to the existing overhang of US Fed possibly raising rates in March 2022. After rising from 7,500 to over 18,000, the Nifty has been consolidating since mid-October 2021. Looking at the fall of the last 30 days, it seems like the Nifty could further correct from present levels. Historically it has been observed that February tends to be volatile, especially post Budget. It is possible for the Nifty to fall up to 15,800 level. However, the long-term structure of the Indian stock market is intact. We remain bullish in 2022 and beyond. Focus on adding quality stocks in the current fall.

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