ENERGY BUSINESSES IN INDIA AFFECTED DUE TO RUSSIA-UKRAINE CONFLICT 

• Mukesh Ambani loses 84000 crores, and Gautam Adani loses 47000 crores due to war. 
• Due to the conflict, Sensex and Nifty fell by 2,702 and 815 points, respectively. 

The earnings of Mukesh Ambani and the Adani family have taken a massive hit during the last seven sessions as Russia and Ukraine have been involved in a war that has the potential to engulf other Western nations. On Thursday, Indian benchmark stocks are expected to decrease for the seventh day in a row, extending the sell-off that began on February 15. The biggest drags on the market have been rising prices and war in Europe. 

Overall, Adani Group equities have lost 5.86 percent or Rs 66,328 crore in market capitalization since February 15, even though they had performed well this year despite market consolidation. The greatest loser was Adani Enterprises, which saw its value plummet by Rs 21,600 crore. Adani Total Gas came in second with a loss of Rs 20,143 crore, followed by Adani Ports with Rs 13,241 crore. in Russia and Ukraine.

At the same time, some of the stocks from Adani’s stable have shown resilience. During the same time, Adani Green Energy increased its capital by Rs 3,810 crore. The drop was even more significant for Mukesh Ambani’s Reliance Group equities. The last seven sessions reduced their market capitalization by Rs 1,12,131 crore or 6.78 percent. Reliance Industries, which lost Rs 1.10 lakh crore, accounted for most of the losses. Network 18 Media & Investments was next, with a market cap loss of Rs 1,288 crore. 

In the same time frame, the Nifty has dropped 6.36 percent, mirroring the losses in the Ambani and Adani stocks. However, if the European crisis continues, the damages for both industry leaders and the market could become even more. 

“If other countries do not attack Russia after the sanctions are lifted.” According to Deven R Choksey, Managing Director of KRChoksey Shares and Securities, “it’s possible that markets may stabilize in the next 3-4 days.” “God forbid, if war breaks out, it might be a catalyst for FIIs to return to India and buy Indian assets as prices become more appealing.” Don’t be alarmed in either circumstance.” 

On Thursday, the market responded to Russia’s launch of “special military actions” against Ukraine. The Nifty and Sensex both dropped more than 3%. Except for one Nifty stock, all sectoral indexes were trading with cuts. The most significant impact was on energy prices. Crude oil prices have surpassed $104 per barrel, whereas European gas prices have increased by 31%. Meanwhile, the RTS index, which measures Russian stocks, fell 50% in the first two trading hours. 

“As the dominating news flow leads to market volatility, geopolitical events frequently result in short-term market reactions,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities. “The current Russia-Ukraine issue will lead to an increase in oil prices, which will be higher than they are now.” High crude prices may postpone the planned slowdown in inflation, which was scheduled to occur in the second half of 2022.” 

He went on to say that investors should concentrate on asset allocation and take advantage of the current volatility to construct long-term holdings in high-quality large and mid-cap equities, which have become more appealing following the recent fall and offer a decent entry opportunity.

Edited By- Mahi Gupta

Published By- Pawan Rajput