sensex and nifty50

Foreign investment continues to pull money from Indian market for five consecutive months, which has led to a bloodbath in the Indian markets for equity.

In the expectation for the US Fed increasing prices six times one year have led to the transfer of money away from emerging markets such as India.

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Additionally, oil prices have been rising rapidly due to the increasing tensions between Russia and Ukraine.

Another week of growing tensions between Russia and Ukraine has affected the mood of the markets across the globe.

Alongside geopolitical tensions the prospect of an the escalating rate of interest hikes from the US Fed have also led to the markets to lose money Indian markets, as international institution investors (FII) kept trying to take out their cash from India for five consecutive months. Morgan Stanley reportedly expects the US Fed to increase rates six times in the coming year, which is a higher rate than what was previously anticipated.

According to the monthly report of the total sales made by FIIs:

October (Rs12,436 crore) November (Rs2,520 crore) and December (Rs29,702 crore) January (Rs28,526 crore) and Feb (Rs18,856 million) (till February 18.

Large institutions have begun anticipating an rise of interest rates through 2022 based on more than anticipated inflation data , which has ratcheted tensions on Fed.

Sensex as well as Nifty 50 fell around one percent on February 21 due to weak signals coming from Asian markets.

To add to the weak signals the oil price has been rising due to increasing tensions between Russia and Ukraine regarding the possibility of disruptions in the oil industry.

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It is important to note that Russia is among the world’s leading producers of crude oil. In addition, western nations have threatened to impose fresh economic and financial sanctions on Russia should it decide to invade Ukraine. Therefore, any sanctions from the west could disrupt supply of oil by one of the world’s largest oil producers.

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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