Decreased significantly in stock prices for the past and a half months when most sectors declined in two digits offering investor opportunities to buy quality company shares.

Margin pressure is reflected in the company’s revenue for the December quarter due to the increase in commodity prices, policy expectations that are faster tightened by the US Federal Reserve, non-stop sales by foreign investors, and geopolitical tensions with Russian invasion to Ukraine weighing on market sentiments.

Benchmark BSE Sensex fell 11 percent during January 17 – February 24 before a small recovery, while the BSE MIDCAP index fell 15 percent and a small index fell 18.5 percent.

Among sectors, cars, capital goods, energy, health care, IT, consumer durability, oil & gas, and realty decreased 10-20 percent, while banking, FMCG and strength fell 7-9 percent.

Volatility reached the highest level since May 2020, with VIX India up around 30, indicating instability in the market unless the geopolitical risk facilitates.

The Russian-Ukrainian crisis, which continues for now even though there are sanctions imposed by Western countries, pose threats to economic income and growth, given the increase in commodity prices, experts said.

Brent crude futures, international benchmarks, reached $ 120 per barrel on March 3, the highest level since 2012 and a 69 percent increase in more than two months.

Inflation, growth risk

“This will be a negative factor for global trade, pose a risk of decreasing global economic growth,” Sumbas Securities said. “An oil scenario that maintains above $ 100 per barrel for more time will create important challenges for oil import countries, especially India, which may find it difficult to maintain trade deficits and foreign exchange reserves.”

The broker said the increase in crude oil prices could delay cooling in inflation in the domestic market, which is estimated to be moderate in the second half of 2022.

However, in the background of the Russian-Ukrainian crisis, commodities will be the biggest enhancer and during geopolitical heat continuing, it will be a theme that dominates the market, the axis axis said.

Apart from the current geopolitical problem, the upcoming event in March includes the Federal Reserve meeting and the assembly selection of the results of five countries.

“Direction of oil prices, bond yields, and the dollar index along with the development of geopolitical events today will further encourage fundamentals of the market,” said the broker, added that once the dust above the Russian-Ukrainian conflict settles, the market is expected to focus on the main events such as Inflation and the number of rise in the current calendar year.

Apart from current volatility, the broker maintains its nifty target of 20,200 with a positive long-term view on the market supported by a favorable structure that arises because of increasing capital expenditure allows banks to increase credit growth.

Nifty closed around 16,500 in March. To reach the target of 20,200, it needs to add 3,700 points, or 22.4 percent, in March 2023. The index touched a record high of 18,604 in October 2021.

Broker said the overall increase in the UNION 2022-23 budget expenditure would help provide extensive FY23 growth.

Although income momentum has been strong in the last few qualvors and most of the hopes of the hope for the current quarter, they remain an important factor for the market, said Axis Securities, which estimates FY22, FY23 and FY24 Nifty EPS at RS 728, RS 844 and RS 918 , respectively, with a growth of 20 percent of CAGR over FY21-24.