According to analysts, if LIC gets IPO as per schedule, it will face difficulties

MUMBAI: The stock market's morale has plummeted as Ukraine-Russia war erupts. In these circumstances, analysts believe that if LIC's IPO comes as scheduled, it will face many difficulties. Given the government's stand on the issue, the IPO is unlikely to be postponed. The IPO is likely to come in the second week of March.

FPI has risen to Rs. 1.5 lakh crore net sales. If the Russia-Ukraine crisis becomes predominant, the selling of foreign investors may become stronger. Which will affect the market sentiment.

Sanctions imposed on Russia will have the opposite effect on global trade and the associated economy. These sanctions are expected to have far-reaching effects on India.

Given the way things are going, the possibility of further rise in oil prices cannot be ruled out. If the nuclear deal with Iran fails and OPEC countries refuse to increase production, oil shortages will worsen and global crude prices will rise further. Which will affect India and also increase inflation.

Given the current situation, it is unreasonable to expect the Federal Reserve to postpone plans to raise interest rates. The extra cycle of interest rates will resume. However, it will be a little slower than before. Earlier, the Federal Reserve was expected to raise interest rates by 0.50 percentage points. However, under the present circumstances, an increase of only 0.5 per cent is expected.

Thus, all these issues will also have an impact on the stock market. As a result, volatility in the market is likely to increase. Given this, difficulties may also arise against LIC's IPO.