The equity market witnessed high volatility on the last two days of the previous week. The Sensex dropped 2,702 points, or 4.7 per cent, on Thursday as Russia invaded Ukraine. On Friday, however, it rose 1,328 points, or 2.44 per cent. It may continue to remain volatile in the near future.
Geopolitics and inflation
In the near term, the Russia-Ukraine conflict could continue and keep the market on the boil.
Inflation and interest-rate hikes will also contribute to equity market volatility this year. “Besides the prevailing geopolitical tensions, a calibrated withdrawal of liquidity support and interest rate hikes by central banks will occur