It#39;s commodity stocks over consumption play if Ukraine-Russia tensions continue, says Dimensions Consulting#39;s Ajay Srivastava

It#39;s commodity stocks over consumption play if Ukraine-Russia tensions continue, says Dimensions Consulting#39;s Ajay Srivastava

Global equities have come under pressure in recent weeks on rising tensions between Ukraine and Russia.





Mumbai / February 22, 2022 / 11:10 AM IST





Nudge investments towards commodity stocks instead of consumption stocks if tensions between Russia and Ukraine continue, Ajay Srivastava, chief executive officer at Dimensions Consulting told CNBC-TV18 in an interview on February 22.

Srivastava believes that basic materials do well in times of geopolitical uncertainty as witnessed in the sharp spike in global crude oil prices since the beginning of 2022. “You got to be on the commodity side and not on the consumption side (of the trade),” Srivastava said.

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Global equities have come under pressure in recent weeks on rising tensions between Ukraine and Russia and a possibility of a war breaking out in Eastern Europe. Russia on February 21 recognised the independence of separatist regions in Eastern Ukraine in what the EU Commission termed a violation of international law and the Minsk Agreement.

Russia’s move has invited the threat of severe sanctions on the country from both the European Union and the US with reports suggesting that some sanctions may be announced