Nifty 50, Sensex fall more than 3 percent after Russia announced special military operations against Ukraine on Thursday morning
Andrew Holland, chief executive officer at Avendus Capital Public Markets Alternate Strategies, said he will not buy in the current sharp fall in the domestic equity market.
Indian benchmark indices plummeted more than 3 percent on February 24 after Russia launched special military operations against Ukraine. Media reports from Europe said that Russian forces have invaded Ukraine from its northern border with Belarus.
Globally, equities from Tokyo to Mumbai were under pressure as investors sought haven amid an escalating crisis in Europe. Global crude oil prices soared nearly 6 percent to breach the $ 100 mark and gold inched towards $ 2,000 per ounce.
“I think you should sit on cash and wait for things to evolve. There will be plenty of opportunities,” Holland said.
Holland said he expected the current situation in Ukraine to stabilise in the next three-four weeks but would guard against getting to early in the ongoing correction. Investors are awaiting the response of the US and other members of the North Atlantic Treaty Organisation to Russia’s action.
US President Joseph Biden said that he will meet the leaders of the Group of Seven advanced economies later today, and that the US and its allies will be imposing severe sanctions on Russia. “We will continue to provide support and assistance to Ukraine and the Ukrainian people,” Biden said.
In terms of investments to avoid over the coming few weeks, Holland said that sectors that are adversely affected by higher commodity prices will be top of the list such as automobile and consumer staples.
However, Holland reiterated that he sees current situation as a short-term phenomenon.
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