Stock Market LIVE: Sensex, Nifty bleed on Ukraine crisis; India VIX jumps 24%

Share market LIVE updates: Indian equities tumbled and oil touched $100/barrel on Thursday after Vladimir Putin authorised a military operation in Ukraine. At 11am, Sensex was down 1,638.95 pts at 55,593.11, while Nifty fell 2.86% to 16575.70. All sectoral indices were in the red

Russian President Vladimir Putin on Thursday announced a military operation in Ukraine, claiming it is intended to protect civilians. In a televised address, Putin said the action comes in response to threats coming from Ukraine. He added that Russia doesn’t have a goal to occupy Ukraine.

Russia-Ukraine attack & India markets: Nitasha Shankar, Head PRS Equity Research, Yes Securities?

Russia has launched an armed forces attack on Ukraine and the event has sent shockwaves across the world. Indian markets have not been immune to the same and have witnessed a massive selloff. This is a time when investors will be tested for their patience and discipline. Markets are choppy and will probably remain this way for some time, but that should not deter a serious investor. The underlying reason for remaining long on India (as an investment) remains strong.

Reasons why one should not panic and go long on India –

Balance Sheets stronger-than-ever: India’s corporate health is the strongest in a long time - deleveraging has been seen across sectors and cash reserves have surged. As a result corporate confidence is high.

Promoters are optimistic about the business potential: This reflects in the increasing promoter holding in NIFTY 500 over time, increasing from 32% to 45% over the last decade. Interestingly, post-Covid, promoters have increased stake by ~3%

Private capex cycle is making a come back

Public capex still strong with the Government giving an impetus even in the recent Union Budget. The budget has put in place a virtuous cycle that we expect would drive a multiyear growth cycle by focusing on (1) sustaining economic recovery through demand-side measures and (2) supply-side reforms with the objective of kick-starting the investment cycle and encouraging private sector participation 3) announcing benefits directed towards domestic production and manufacturing especially in emerging sectors like clean energy, etc. which is critical for India’s medium-term growth prospects.

China plus one strategy is helping drive demand in specific sectors

PLI scheme is a big game changer that is encouraging and supporting domestic production

Green energy transition for India is opening up a whole new investment opportunity for the investors

Moving in and out of investments based on undue reliance on recent performance is likely to result in excessive trading and inferior performance results. This is the time to revisit the basics, have confidence in the long term potential of India and remain invested in the same.

Oil at $100 set to compound the world economy’s inflation shock

Oil’s surge to $100 a barrel for the first time since 2014 represents a double-blow to the world economy by further denting growth prospects and driving up inflation.

That’s a worrying combination for the U.S. Federal Reserve and fellow central banks as they seek to contain the strongest price pressures in decades without derailing recoveries from the pandemic.

Futures in London jumped as much as 3.3% as Russia’s dramatic escalation of the Ukraine crisis sparked fears of a disruption to the region’s critical energy exports.

Bharti Airtel acquires strategic stake in blockchain technology startup Aqilliz: BSE filing?

Bharti Airtel on Thursday said it has acquired a strategic stake in Aqilliz – a Blockchain as a Service Company under the Airtel Startup Accelerator Program, subject to applicable statutory approvals.

Singapore-based Aqilliz has developed a patented hybrid blockchain platform, Atom that integrates differential privacy and federated learning on a distributed digital ledger. This allows brands to create secure and consent-based solutions to engage with customers in a rapidly evolving digital economy that’s becoming increasingly decentralised.

Airtel aims to deploy Aqilliz’s advanced blockchain technologies at scale across its fast growing Adtech (Airtel Ads), Digital Entertainment (Wynk Music & Airtel Xstream) and Digital Marketplace (Airtel Thanks App) offerings.

Gold jumps over 2% as Russia attacks Ukraine: Reuters?

Gold prices on Thursday jumped over 2% to their highest in more than a year as investors rushed to safe havens after Russian forces invaded Ukraine in what could be the start of war in Europe.

Spot gold jumped 1.9% to $1,943.86 per ounce, its highest level since early Jan. 2021. U.S. gold futures climbed 2% to $1,949.20.

Russian forces fired missiles at several Ukrainian cities and landed troops on its south coast, officials and media said, after President Vladimir Putin authorised a military operation in eastern Ukraine.

Russia says it is targeting Ukraine's military infrastructure: report?

Russia is targeting Ukraine's military infrastructure, air defence, and air forces with high-precision weapons and is not attacking Ukrainian cities, Reuters reported citing Russia's RIA news agency which quoted the Russian defence ministry as saying on Thursday.

Kyiv has said Moscow has launched a full-scale attack on Ukraine, with military command centres in a number of cities hit by missiles

Brent hits $100. What are the implications of higher oil prices?

Brent crude oil prices surpassed $100 per barrel on Thursday, a first since 2014. This after Russian president Vladimir Putin ordered troops into eastern Ukraine.

Unsurprisingly, Indian stock markets also nosedived, following escalating geopolitical tensions and a surge in crude. In early trade on Thursday, BSE Sensex and Nifty50 indices cracked more than 3% each.

Higher oil prices are bad news for the India economy as it imports a lion’s share of its fuel requirements. With this, over the past one year, benchmark crude prices have now risen by more than 50%. In the near future, oil prices are expected to remain firm.?

“We expect crude oil prices to remain volatile and rise from current levels if geopolitical concerns do not materially ease," pointed out a report from Kotak Institutional Equities on 23 February. The brokerage added, “We maintain our current oil price estimate of $80 per barrel in FY2023 for the time being, while noting upside risks if ongoing geopolitical concerns persist over the coming months."?

NATO allies to meet over Moscow's "aggressive actions", Stoltenberg says: Reuters?

NATO Secretary-General Jens Stoltenberg strongly condemned Russia's "reckless and unprovoked attack" on Ukraine and said NATO allies would meet to tackle the consequences of Moscow's "aggressive actions".

In a statement early on Thursday, Stoltenberg said, "Once again, despite our repeated warnings and tireless efforts to engage in diplomacy, Russia has chosen the path of aggression against a sovereign and independent country."

He urged Russia to cease its military action immediately and respect Ukraine's sovereignty and territorial integrity.

Market view: ICICI Securities?

The index started Wednesday’s session with a positive gap (17092-17195) but failed to sustain at higher levels as index wiped out initial gains. As a result, daily price action formed a bear candle carrying higher high-low, indicating breather after last sessions sharp pullback of 300 points

The escalated geopolitical issues have triggered elevated volatility in the equity market. In the process, we expect strong support for the Nifty is placed around January low of 16800 which has been held on five occasions over past two months despite elevated global volatility. Therefore, only a decisive close below 16800 would lead to further acceleration of decline towards 16400-16300 as it is confluence of:

December 2021 lows of 16410

Equality of current down leg from February high of 17794, with mid-January decline (18350-16836), at 16300

Biden says US, allies will respond to 'unjustified' attack by Russia on Ukraine: Reuters?

The United States and its allies will respond in a united and decisive way to "an unprovoked and unjustified attack by Russian military forces" on Ukraine, U.S. President Joe Biden said after blasts were heard in the Ukrainian capital of Kyiv.

"President (Vladimir) Putin has chosen a premeditated war that will bring a catastrophic loss of life and human suffering," Biden said in a statement.

"Russia alone is responsible for the death and destruction this attack will bring. The world will hold Russia accountable."

Biden said he would announce on Thursday further consequences to be imposed on Russia by the United States and its allies.

Oil, gold jump on growing risks over Russia and Ukraine

Oil and gold jumped after TASS news agency reported that Russian President Vladimir Putin decided to conduct a special operation to “protect" the Donbas region.

Brent crude advanced 2.6% to $99.36 a barrel while gold hit its highest level in more than a year on increased demand for the haven asset.

Russia's Putin announces military operation in Ukraine: AP

Russian President Vladimir Putin on Thursday announced a military operation in Ukraine, claiming it’s intended to protect civilians.

In a televised address, Putin said the action comes in response to threats coming from Ukraine. He added that Russia doesn’t have a goal to occupy Ukraine. Putin said the responsibility for bloodshed lies with the Ukrainian “regime."

Putin warned other countries that any attempt to interfere with the Russian action would lead to “consequences they have never seen."

He accused the U.S. and its allies of ignoring Russia’s demand to prevent Ukraine from joining NATO and offer Moscow security guarantees.

He said the Russian military operation aims to ensure a “demilitarization" of Ukraine. Putin said that all Ukrainian servicemen who lay down arms will be able to safely leave the zone of combat.

There was no immediate reaction from the White House to Putin’s remarks, but U.S. officials have repeatedly pledged to place overwhelming sanctions on the Russian economy and Putin allies in retaliation for a further invasion of Ukraine.

Vodafone to sell partial stake in Indus Towers Ltd: LSE filing?

Vodafone Group Plc ("Vodafone") holds 757.8 million shares in Indus Towers Limited ("Indus"), equivalent to a 28.1% shareholding. 190.7 million of these shares, equivalent to a 7.1% shareholding, are currently pledged to Indus (the "Primary Shares") as part of the security arrangements entered into between Vodafone and Indus (the "Security Arrangements") at the time of the merger of Indus Towers with Bharti Infratel.

Vodafone announces that it has launched a placing of 63.6 million Primary Shares in Indus through an accelerated book build offering (the "Placing"). This represents 2.4% of Indus' outstanding share capital.

Vodafone is also in advanced discussions with one of the largest shareholders in Indus for the purchase of up to 127.1m Indus shares from Vodafone, or 4.7% of Indus' outstanding share capital, which represents the remaining balance of Primary Shares. The terms of such an agreement are currently being discussed and there can be no certainty that the sale will proceed. Should the sale be completed, Vodafone would retain 567.2 million shares in Indus, or a 21.0% shareholding (the "Residual Shareholding").

In addition, Vodafone is also in discussions with several interested parties in relation to a potential sale of the Residual Shareholding. A further announcement will be made as soon as practicable if any further agreements are reached.

Vodafone and the Aditya Birla Group ("ABG"), the promoters of Vodafone Idea Limited ("Vi"), are committed to support Vi in its efforts to strengthen its balance sheet. The first step in this process included the conversion of $2.1bn of AGR and spectrum interest into equity, which will make the Indian Government the largest shareholder of Vi. Vodafone and ABG intend to contribute towards an issue of equity shares by Vi (a "Capital Raise") once the terms of such a Capital Raise have been evaluated and decided on by the Board of Directors of Vi.

Vodafone and Indus have modified the Security Arrangements in order to allow Vodafone to dispose of the pledged Primary Shares and use the proceeds to participate in an issue of new shares by Vi, referenced above. The modified terms will continue to provide security to Indus for an equivalent amount of payments by Vi under the Master Services Agreements. Any residual proceeds from the sale of the Primary Shares that are not used by Vodafone to subscribe for new shares in Vi will be available to Indus until 19 November 2022 to guarantee Vi's obligations under the Master Services Agreements.

SC asks Amazon, FRL to seek quick resolution from NCLAT

The Supreme Court on Wednesday fast-tracked proceedings before the National Company Law Appellate Tribunal (NCLAT) on the validity of a 2019 deal between Amazon.com Inc. and the Future Group which gave the American retail giant the right to buy into the latter’s flagship Future Retail Ltd (FRL).

In December, the Competition Commission of India (CCI) suspended the clearance for the 2019 deal between Amazon and Future, holding that Amazon failed to notify it about certain crucial details of its acquisition as required under the law. The CCI also imposed a penalty of ?202 crore on Amazon, which has now challenged the decision before the NCLAT.

SGX Nifty futures tank 269 points to 16,794.00 in early deals

Nifty futures on the Singapore Exchange fell 269 points, or 1.58%, to 16,794.00, in early deals on Thursday, pointing at a negative start for Indian benchmarks.?

Asia shares fall on fear Russian invasion of Ukraine

Stocks fell Thursday on growing geopolitical tension after the Kremlin said separatists in eastern Ukraine asked President Vladimir Putin for help, a step that could lead to Russian troop deployments.

An Asia-Pacific equity gauge fell to the lowest level this month amid declines in Japan, Hong Kong and China. U.S. futures retreated following a technology slide Wednesday that pushed the S&P 500 further into a correction. Treasuries, the dollar, gold and crude oil all gained.

The Kremlin said separatist leaders from two self-declared republics sought help to repel Ukrainian forces. Putin has said he doesn’t yet intend to send what he called “peacekeepers" to eastern Ukraine, but would do so “as necessary." Russia has rejected U.S. warnings that it plans to invade Ukraine.

Western powers have expanded sanctions to deter Russian aggression after the nation massed troops around its neighbor. The latest U.S. step was to target the builder of the Nord Stream 2 gas pipeline linking Russia and Germany.

S&P 500 futures fell 0.7%, Nasdaq 100 futures slid 0.8%.?

Japan’s Topix index fell 0.8%, Australia’s S&P/ASX 200 index fell 2.9%, South Korea’s Kospi index shed 1.6%, Hong Kong’s Hang Seng index fell 1.6%, and China’s Shanghai Composite index lost 0.3%.

Overnight, U.S. stocks took a beating, as Ukraine declared a state of emergency and the U.S. State Department said a Russian invasion of Ukraine remains potentially imminent.?

The Dow Jones Industrial Average fell 464.85 points, or 1.38%, to 33,131.76, the S&P 500 lost 79.26 points, or 1.84%, to 4,225.5 and the Nasdaq Composite dropped 344.03 points, or 2.57%, to 13,037.49.

The MSCI World Index, a leading gauge of equity markets globally, skidded to its lowest level since April 2021.

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