Geopolitical Tension Takes Its Toll

India’s manufacturing Purchasing Managers’ Index (PMI) improved to 54.9 in February after dropping to a four-month low of 54 in January, as the Omicron variant spread like wildfire throughout the country

Domestic frontline benchmark indices Nifty 50 and Sensex plummeted 5.59 per cent and 5.81 per cent, respectively, over the fortnight primarily due to escalating geopolitical tensions between Russia and Ukraine and sky-high crude oil prices.

BSE Mid-Cap and Small-Cap indices also bore the brunt of weak global cues, plunging 4.09 per cent and 3.13 per cent, respectively. However, BSE Metal index managed to buck the trend, becoming the top gainer and registering healthy gains of 7.57 per cent. This surge comes on the back of consistent rise in metal prices due to sanctions being imposed on Russia, which opens up a window of opportunity for Indian metal exporters.