War fallout! M&M, TaMo, Ashok Leyland can fall up to 12% on chip shortage

The Nifty Auto index has broken key support levels, and looks weak on the weekly charts indicating a downside of 5 per cent.

In the backdrop of the on-going Russia-Ukraine war, global markets are worried about nuclear fallout, disruptions in several economic functions and rising commodity prices, which in turn call for immediate increase in interest rates. Though, markets are well aware of the Fed’s intention to do so, a quarter-point seems on card, whereas a half-point hike could surprise the market. 

That apart, Russia and Ukraine produce a major component of semiconductor chips. Globally, 40 per cent of palladium, one of the resources, comes from Russia, while Ukraine supplies 70 per cent of neon worldwide.

The geopolitical event has hit