Despite the deteriorating political climate in Russia, the war has left the financial sector in a state of shock. This is one of the biggest security crises since World War II. The perception of the world, especially democracies, was that a full-scale war was unlikely. It was thought that the only differences of opinion were between Russia and Ukraine. It was hoped that the tug-of-war would lead to long-term diplomatic problems. Putin's reaction to NATO's invasion of some Russian provinces has shocked the democratic world.
The war really affected the global stock market. The Russian market fell 50 percent on the first day. Its repercussions were felt in local markets as well. The global MSCI index fell between three and five per cent. But the market tried to make a comeback the next day. This was due to low prices and US sanctions not targeting Russia's oil exports and preventing the Swift system.
The world hopes that this war will end soon, though. Putin's statement that Russia does not intend to invade Ukraine comes as a warning that the US or NATO should not intervene in the war without resorting to sanctions.
Is it the right time to invest?
Is this the right time to buy stocks? The answer is that it is the right time to buy stocks for the medium to long term. It is unlikely that the war will weaken the Indian economy, let alone short-term fiscal deficit and inflation due to high fuel prices.
There has been a significant correction in the broader market. For example, the Nifty 500 has an 80 per cent stake, a minimum of 20 per cent and a maximum of 80 per cent. Shares of the 52-week high fell an average of 30 percent.
This is a great opportunity if you have the money to spend on a portfolio. Investment should only be superior and systematic. Buying in bulk is not beneficial. Quality should be looked at rather than the growth of stocks. Not all high-priced stocks perform well. Stocks with a fair price, firm deals and financial outlook perform well.
>Banking, IT, pharma, telecom, core products and consumer sectors are the best. Shares in this sector have been trading at an average fair price for the past five years. Moreover, their potential in the long run is excellent.
Rising crude oil prices have hit Indian oil companies hard last week. Operating profit in the oil industry declined during the quarter due to rising raw material costs and supply chain problems. This is likely to continue in the coming quarters.
The Russia-Ukraine war will affect the oil industry for a short time to come. Crude oil prices are hovering above $ 100 a barrel. But if the war changes, it will come back. Shares in the gas sector are attractive in the long run. This is due to continuous growth and renewable energy potential.