Everyone knows that when a war takes place between two countries, then the entire universe gets affected. We all are interconnected via resources. No single nation on the globe is well equipped with all the resources. Everyone is dependent on others for one thing or another. If we talk about Russia, it is one of the biggest crude oil exporters in the world. In the time of crisis when the US has banned crude oil imports from Russia, will lead to a hike in the oil prices. Through many years of research we haven’t found any substitute for this resource and we are highly dependent on this source of energy. In India where 82% of crude oil is imported, will be highly affected by the spike in oil price. However, India only imports 2.3% of crude oil from Russia, so the impact can not be that big on oil prices. But as we said earlier that crude oil is a limited resource, so nothing can be said about what can happen in the future. The impact of this will be global and everyone will get affected by it, if not more, then a little, but will for sure.
It is right that European nations have not joined the US in banning imports from Russia officially but the percentage of exports has already declined in Russia by other countries due to the threat of sanctions. The Russia Ukraine conflict is affecting the world and especially India in many ways, as there is a fall in the Indian equity market economy. The BSE Sensex has dropped 920.10 points or 1.65 percent, on the other hand, NSE Nifty dropped 284.45 points or 1.71 percent.
The head of the retail research at Motilal Oswal Financial Services Ltd said “Markets are likely to remain under pressure given the escalation of Russia Ukraine conflict into a war-like situation. Any reaction from NATO/US armies is only going to worsen the situation further. Investors need to keep calm to tide over the current situation” in a statement.
But in the market boom and depression situations come and go and if there is a fall soon there will be rise again.
The increasing equity market and crude oil price will further lead to inflation that will affect the common man of India. An increase in crude oil price due to the Ukraine crisis will put a hike in the price of even necessary items. And in the situation of inflation the government will increase the repo and reverse the repo rate to make stability in the market that will again further affect the normal people in India.
Mukesh Bubna, the Founder and CEO of the Monexo Fintech Pvt. Ltd said “Given the US interest rate hikes as well as India’s inflation rates, repo rates could go up again. This will have an impact on housing loans which are majorly variable rate and linked to MIBOR. The impact will be felt by people who have large-ticket housing loans”.
These are the Russia-Ukraine war highlights for today. Stay connected to us for more updates.
References
How The Russia-Ukraine Crisis Will Hit The Common Man
